Correlation Between Mainstay Map and American Funds
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and American Funds 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 American Funds 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 American Funds Conservative, you can compare the effects of market volatilities on Mainstay Map and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and American Funds.
Diversification Opportunities for Mainstay Map and American Funds
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and American is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and American Funds Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Conse 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Conse has no effect on the direction of Mainstay Map i.e., Mainstay Map and American Funds go up and down completely randomly.
Pair Corralation between Mainstay Map and American Funds
Assuming the 90 days horizon Mainstay Map is expected to generate 1.03 times less return on investment than American Funds. In addition to that, Mainstay Map is 2.02 times more volatile than American Funds Conservative. It trades about 0.05 of its total potential returns per unit of risk. American Funds Conservative is currently generating about 0.1 per unit of volatility. If you would invest 1,135 in American Funds Conservative on August 29, 2024 and sell it today you would earn a total of 235.00 from holding American Funds Conservative or generate 20.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Map Equity vs. American Funds Conservative
Performance |
| Timeline |
| Mainstay Map Equity |
| American Funds Conse |
Mainstay Map and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and American Funds
The main advantage of trading using opposite Mainstay Map and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Artisan Select Equity | American Funds vs. Dreyfusstandish Global Fixed | American Funds vs. Gmo Global Equity | American Funds vs. Dodge International Stock |
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.
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