Correlation Between Mainstay Map and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Mainstay High 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 High 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 High Yield, you can compare the effects of market volatilities on Mainstay Map and Mainstay High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Mainstay High.
Diversification Opportunities for Mainstay Map and Mainstay High
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Mainstay Map i.e., Mainstay Map and Mainstay High go up and down completely randomly.
Pair Corralation between Mainstay Map and Mainstay High
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 3.54 times more return on investment than Mainstay High. However, Mainstay Map is 3.54 times more volatile than Mainstay High Yield. It trades about 0.07 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.17 per unit of risk. If you would invest 1,868 in Mainstay Map Equity on August 31, 2024 and sell it today you would earn a total of 400.00 from holding Mainstay Map Equity or generate 21.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Map Equity vs. Mainstay High Yield
Performance |
| Timeline |
| Mainstay Map Equity |
| Mainstay High Yield |
Mainstay Map and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Mainstay High
The main advantage of trading using opposite Mainstay Map and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Mainstay Map vs. Inverse Government Long | Mainstay Map vs. Franklin Government Money | Mainstay Map vs. Government Securities Fund | Mainstay Map vs. Fidelity Series Government |
| Mainstay High vs. American Funds Inflation | Mainstay High vs. The Hartford Inflation | Mainstay High vs. Aqr Managed Futures | Mainstay High vs. Ab Bond Inflation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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