Correlation Between Mainstay Large and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Large 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 Large 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 Large Cap and Mainstay Large Cap, you can compare the effects of market volatilities on Mainstay Large 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 Large with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Large.
Diversification Opportunities for Mainstay Large 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 Large Cap 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 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 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 Large i.e., Mainstay Large and Mainstay Large go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay Large
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 0.96 times more return on investment than Mainstay Large. However, Mainstay Large Cap is 1.05 times less risky than Mainstay Large. It trades about 0.09 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.08 per unit of risk. If you would invest 862.00 in Mainstay Large Cap on August 30, 2024 and sell it today you would earn a total of 561.00 from holding Mainstay Large Cap or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay Large Cap
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay Large Cap |
Mainstay Large and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay Large
The main advantage of trading using opposite Mainstay Large and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large 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 Large vs. Pace Large Growth | Mainstay Large vs. Aqr Large Cap | Mainstay Large vs. Goldman Sachs Large | Mainstay Large vs. T Rowe Price |
| Mainstay Large vs. Tax Managed Mid Small | Mainstay Large vs. Chartwell Small Cap | Mainstay Large vs. Touchstone Small Cap | Mainstay Large vs. Ancorathelen Small Mid 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance |