Correlation Between Mainstay Map and Mainstay Equity
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Mainstay Equity 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 Equity 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 Equity Etf, you can compare the effects of market volatilities on Mainstay Map and Mainstay Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Mainstay Equity.
Diversification Opportunities for Mainstay Map and Mainstay Equity
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Mainstay Equity Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Equity Etf 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Equity Etf has no effect on the direction of Mainstay Map i.e., Mainstay Map and Mainstay Equity go up and down completely randomly.
Pair Corralation between Mainstay Map and Mainstay Equity
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 0.7 times more return on investment than Mainstay Equity. However, Mainstay Map Equity is 1.44 times less risky than Mainstay Equity. It trades about 0.38 of its potential returns per unit of risk. Mainstay Equity Etf is currently generating about -0.01 per unit of risk. If you would invest 1,989 in Mainstay Map Equity on October 23, 2024 and sell it today you would earn a total of 95.00 from holding Mainstay Map Equity or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mainstay Map Equity vs. Mainstay Equity Etf
Performance |
| Timeline |
| Mainstay Map Equity |
| Mainstay Equity Etf |
Mainstay Map and Mainstay Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Mainstay Equity
The main advantage of trading using opposite Mainstay Map and Mainstay Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Mainstay Equity 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 Equity will offset losses from the drop in Mainstay Equity's long position.| Mainstay Map vs. Angel Oak Ultrashort | Mainstay Map vs. Aqr Sustainable Long Short | Mainstay Map vs. Aamhimco Short Duration | Mainstay Map vs. Delaware Investments Ultrashort |
| Mainstay Equity vs. Multisector Bond Sma | Mainstay Equity vs. Gmo High Yield | Mainstay Equity vs. Ambrus Core Bond | Mainstay Equity vs. Versatile Bond Portfolio |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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