Correlation Between Mainstay Map and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Mainstay Balanced 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 Balanced 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 Balanced Fund, you can compare the effects of market volatilities on Mainstay Map and Mainstay Balanced 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 Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Mainstay Balanced.
Diversification Opportunities for Mainstay Map and Mainstay Balanced
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 Map Equity and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced 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 Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Mainstay Map i.e., Mainstay Map and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Mainstay Map and Mainstay Balanced
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 1.42 times more return on investment than Mainstay Balanced. However, Mainstay Map is 1.42 times more volatile than Mainstay Balanced Fund. It trades about 0.34 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.33 per unit of risk. If you would invest 1,997 in Mainstay Map Equity on November 4, 2024 and sell it today you would earn a total of 90.00 from holding Mainstay Map Equity or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Map Equity vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Mainstay Map Equity |
| Mainstay Balanced |
Mainstay Map and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Mainstay Balanced
The main advantage of trading using opposite Mainstay Map and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Mainstay Map vs. Dws Global Macro | Mainstay Map vs. Qs Large Cap | Mainstay Map vs. Rbc Global Equity | Mainstay Map vs. Ab Global Bond |
| Mainstay Balanced vs. Pnc Balanced Allocation | Mainstay Balanced vs. Qs Moderate Growth | Mainstay Balanced vs. Tax Managed Large Cap | Mainstay Balanced vs. Morningstar Global Income |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |