Correlation Between Mainstay Winslow and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Mainstay Winslow and Mainstay Pinestone 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 Winslow and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Winslow Large and Mainstay Pinestone International, you can compare the effects of market volatilities on Mainstay Winslow and Mainstay Pinestone 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 Winslow with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Mainstay Pinestone.
Diversification Opportunities for Mainstay Winslow and Mainstay Pinestone
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MainStay and Mainstay is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Winslow Large and Mainstay Pinestone Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone and Mainstay Winslow 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 Winslow Large are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Mainstay Winslow and Mainstay Pinestone
Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 1.38 times more return on investment than Mainstay Pinestone. However, Mainstay Winslow is 1.38 times more volatile than Mainstay Pinestone International. It trades about 0.1 of its potential returns per unit of risk. Mainstay Pinestone International is currently generating about -0.01 per unit of risk. If you would invest 956.00 in Mainstay Winslow Large on August 29, 2024 and sell it today you would earn a total of 149.00 from holding Mainstay Winslow Large or generate 15.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Winslow Large vs. Mainstay Pinestone Internation
Performance |
| Timeline |
| Mainstay Winslow Large |
| Mainstay Pinestone |
Mainstay Winslow and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Winslow and Mainstay Pinestone
The main advantage of trading using opposite Mainstay Winslow and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Winslow position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Mainstay Winslow vs. Power Global Tactical | Mainstay Winslow vs. Wasatch Global Opportunities | Mainstay Winslow vs. Dreyfusstandish Global Fixed | Mainstay Winslow vs. Ab Global Risk |
| Mainstay Pinestone vs. Tiaa Cref Smallmid Cap Equity | Mainstay Pinestone vs. Small Cap Stock | Mainstay Pinestone vs. Lord Abbett Diversified | Mainstay Pinestone vs. Adams Diversified Equity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |