Correlation Between Mainstay Winslow and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Winslow and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Mainstay Winslow and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Mainstay Large.
Diversification Opportunities for Mainstay Winslow and Mainstay Large
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mainstay and Mainstay is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Winslow Large and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Mainstay Large go up and down completely randomly.
Pair Corralation between Mainstay Winslow and Mainstay Large
Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 1.01 times more return on investment than Mainstay Large. However, Mainstay Winslow is 1.01 times more volatile than Mainstay Large Cap. It trades about 0.1 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.1 per unit of risk. If you would invest 854.00 in Mainstay Winslow Large on August 25, 2024 and sell it today you would earn a total of 250.00 from holding Mainstay Winslow Large or generate 29.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Winslow Large vs. Mainstay Large Cap
Performance |
| Timeline |
| Mainstay Winslow Large |
| Mainstay Large Cap |
Mainstay Winslow and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Winslow and Mainstay Large
The main advantage of trading using opposite Mainstay Winslow and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Winslow position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Mainstay Winslow vs. Prudential High Yield | Mainstay Winslow vs. Pia High Yield | Mainstay Winslow vs. Dunham High Yield | Mainstay Winslow vs. American Century High |
| Mainstay Large vs. Mainstay High Yield | Mainstay Large vs. Mainstay Tax Free | Mainstay Large vs. Mainstay Income Builder | Mainstay Large vs. Mainstay Large Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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