Correlation Between Mainstay Large and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Mainstay Winslow at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mainstay Large and Mainstay Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Mainstay Winslow Large, you can compare the effects of market volatilities on Mainstay Large and Mainstay Winslow and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mainstay Large with a short position of Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Winslow.
Diversification Opportunities for Mainstay Large and Mainstay Winslow
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and MainStay is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large and Mainstay Large is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mainstay Large Cap are associated (or correlated) with Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Mainstay Large i.e., Mainstay Large and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay Winslow
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 0.98 times more return on investment than Mainstay Winslow. However, Mainstay Large Cap is 1.02 times less risky than Mainstay Winslow. It trades about 0.17 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.14 per unit of risk. If you would invest 1,350 in Mainstay Large Cap on August 29, 2024 and sell it today you would earn a total of 62.00 from holding Mainstay Large Cap or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay Winslow Large
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay Winslow Large |
Mainstay Large and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay Winslow
The main advantage of trading using opposite Mainstay Large and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Mainstay Winslow can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay Winslow will offset losses from the drop in Mainstay Winslow's long position.| Mainstay Large vs. Huber Capital Diversified | Mainstay Large vs. Sentinel Small Pany | Mainstay Large vs. The Gabelli Small | Mainstay Large vs. Pgim Jennison Diversified |
| Mainstay Winslow vs. Power Global Tactical | Mainstay Winslow vs. Wasatch Global Opportunities | Mainstay Winslow vs. Dreyfusstandish Global Fixed | Mainstay Winslow vs. Ab Global Risk |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |