Correlation Between Mainstay Winslow and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Mainstay Winslow and Mainstay Growth 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 Growth 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 Growth Etf, you can compare the effects of market volatilities on Mainstay Winslow and Mainstay Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Mainstay Growth.
Diversification Opportunities for Mainstay Winslow and Mainstay Growth
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 Winslow Large and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Mainstay Growth go up and down completely randomly.
Pair Corralation between Mainstay Winslow and Mainstay Growth
Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 1.83 times more return on investment than Mainstay Growth. However, Mainstay Winslow is 1.83 times more volatile than Mainstay Growth Etf. It trades about 0.12 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.2 per unit of risk. If you would invest 1,072 in Mainstay Winslow Large on August 31, 2024 and sell it today you would earn a total of 33.00 from holding Mainstay Winslow Large or generate 3.08% 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 Growth Etf
Performance |
| Timeline |
| Mainstay Winslow Large |
| Mainstay Growth Etf |
Mainstay Winslow and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Winslow and Mainstay Growth
The main advantage of trading using opposite Mainstay Winslow and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Winslow position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Mainstay Winslow vs. Ab Small Cap | Mainstay Winslow vs. Growth Opportunities Fund | Mainstay Winslow vs. Legg Mason Partners | Mainstay Winslow vs. Small Pany Growth |
| Mainstay Growth vs. Franklin Natural Resources | Mainstay Growth vs. Energy Basic Materials | Mainstay Growth vs. Gmo Resources | Mainstay Growth vs. Icon Natural Resources |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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