Correlation Between Mainstay Moderate and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Mainstay Short 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 Moderate and Mainstay Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Moderate Allocation and Mainstay Short Duration, you can compare the effects of market volatilities on Mainstay Moderate and Mainstay Short 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 Moderate with a short position of Mainstay Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Mainstay Short.
Diversification Opportunities for Mainstay Moderate and Mainstay Short
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration and Mainstay Moderate 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 Moderate Allocation are associated (or correlated) with Mainstay Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Mainstay Short
Assuming the 90 days horizon Mainstay Moderate Allocation is expected to generate 4.57 times more return on investment than Mainstay Short. However, Mainstay Moderate is 4.57 times more volatile than Mainstay Short Duration. It trades about 0.1 of its potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.23 per unit of risk. If you would invest 1,341 in Mainstay Moderate Allocation on August 29, 2024 and sell it today you would earn a total of 146.00 from holding Mainstay Moderate Allocation or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Moderate Allocation vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Moderate |
| Mainstay Short Duration |
Mainstay Moderate and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Mainstay Short
The main advantage of trading using opposite Mainstay Moderate and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Moderate vs. Growth Fund Of | Mainstay Moderate vs. Chase Growth Fund | Mainstay Moderate vs. Ancorathelen Small Mid Cap | Mainstay Moderate vs. T Rowe Price |
| Mainstay Short vs. Rationalpier 88 Convertible | Mainstay Short vs. Lord Abbett Convertible | Mainstay Short vs. Putnam Convertible Incm Gwth | Mainstay Short vs. Gabelli Convertible And |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |