Correlation Between Mainstay Map and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Mainstay Pinestone 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 Map and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Map Equity and Mainstay Pinestone International, you can compare the effects of market volatilities on Mainstay Map and Mainstay Pinestone 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 Map with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Mainstay Pinestone.
Diversification Opportunities for Mainstay Map and Mainstay Pinestone
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Mainstay is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Mainstay Pinestone Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone and Mainstay Map 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 Map Equity are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone has no effect on the direction of Mainstay Map i.e., Mainstay Map and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Mainstay Map and Mainstay Pinestone
Assuming the 90 days horizon Mainstay Map is expected to generate 3.11 times less return on investment than Mainstay Pinestone. But when comparing it to its historical volatility, Mainstay Map Equity is 2.06 times less risky than Mainstay Pinestone. It trades about 0.05 of its potential returns per unit of risk. Mainstay Pinestone International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,176 in Mainstay Pinestone International on August 29, 2024 and sell it today you would earn a total of 463.00 from holding Mainstay Pinestone International or generate 39.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.91% |
| Values | Daily Returns |
Mainstay Map Equity vs. Mainstay Pinestone Internation
Performance |
| Timeline |
| Mainstay Map Equity |
| Mainstay Pinestone |
Mainstay Map and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Mainstay Pinestone
The main advantage of trading using opposite Mainstay Map and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Mainstay Map vs. American Funds Conservative | Mainstay Map vs. Massmutual Premier Diversified | Mainstay Map vs. Huber Capital Diversified | Mainstay Map vs. Pioneer Diversified High |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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