Correlation Between Mainstay Winslow and Mainstay Common
Can any of the company-specific risk be diversified away by investing in both Mainstay Winslow and Mainstay Common 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 Common 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 Mon Stock, you can compare the effects of market volatilities on Mainstay Winslow and Mainstay Common 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 Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Mainstay Common.
Diversification Opportunities for Mainstay Winslow and Mainstay Common
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Winslow Large and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock 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 Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Mainstay Common go up and down completely randomly.
Pair Corralation between Mainstay Winslow and Mainstay Common
Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 1.5 times more return on investment than Mainstay Common. However, Mainstay Winslow is 1.5 times more volatile than Mainstay Mon Stock. It trades about 0.08 of its potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.09 per unit of risk. If you would invest 705.00 in Mainstay Winslow Large on September 2, 2024 and sell it today you would earn a total of 408.00 from holding Mainstay Winslow Large or generate 57.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Winslow Large vs. Mainstay Mon Stock
Performance |
| Timeline |
| Mainstay Winslow Large |
| Mainstay Mon Stock |
Mainstay Winslow and Mainstay Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Winslow and Mainstay Common
The main advantage of trading using opposite Mainstay Winslow and Mainstay Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Winslow position performs unexpectedly, Mainstay Common 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 Common will offset losses from the drop in Mainstay Common's long position.| Mainstay Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow vs. Mainstay Large Cap |
| Mainstay Common vs. Mainstay High Yield | Mainstay Common vs. Mainstay Tax Free | Mainstay Common vs. Mainstay Income Builder | Mainstay Common 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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