Correlation Between Mainstay High and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Mainstay Moderate 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 High and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay High Yield and Mainstay Moderate Etf, you can compare the effects of market volatilities on Mainstay High and Mainstay Moderate 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 High with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Mainstay Moderate.
Diversification Opportunities for Mainstay High and Mainstay Moderate
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Mainstay Moderate Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Etf and Mainstay High 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 High Yield are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Etf has no effect on the direction of Mainstay High i.e., Mainstay High and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay High and Mainstay Moderate
Assuming the 90 days horizon Mainstay High is expected to generate 332.0 times less return on investment than Mainstay Moderate. But when comparing it to its historical volatility, Mainstay High Yield is 2.22 times less risky than Mainstay Moderate. It trades about 0.0 of its potential returns per unit of risk. Mainstay Moderate Etf is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,252 in Mainstay Moderate Etf on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Moderate Etf or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Mainstay Moderate Etf
Performance |
| Timeline |
| Mainstay High Yield |
| Mainstay Moderate Etf |
Mainstay High and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Mainstay Moderate
The main advantage of trading using opposite Mainstay High and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay High vs. William Blair Small | Mainstay High vs. Mid Cap Growth Profund | Mainstay High vs. Heartland Value Plus | Mainstay High vs. Victory Rs Partners |
| Mainstay Moderate vs. Mainstay High Yield | Mainstay Moderate vs. Mainstay Tax Free | Mainstay Moderate vs. Mainstay Income Builder | Mainstay Moderate 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |