Correlation Between Mainstay Moderate and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Old Westbury 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 Old Westbury 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 Old Westbury Large, you can compare the effects of market volatilities on Mainstay Moderate and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Old Westbury.
Diversification Opportunities for Mainstay Moderate and Old Westbury
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Old is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Large has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Old Westbury go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Old Westbury
Assuming the 90 days horizon Mainstay Moderate is expected to generate 1.67 times less return on investment than Old Westbury. But when comparing it to its historical volatility, Mainstay Moderate Allocation is 1.53 times less risky than Old Westbury. It trades about 0.1 of its potential returns per unit of risk. Old Westbury Large is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Old Westbury Large on September 12, 2024 and sell it today you would earn a total of 720.00 from holding Old Westbury Large or generate 49.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Moderate Allocation vs. Old Westbury Large
Performance |
| Timeline |
| Mainstay Moderate |
| Old Westbury Large |
Mainstay Moderate and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Old Westbury
The main advantage of trading using opposite Mainstay Moderate and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Mainstay Moderate vs. L Abbett Growth | Mainstay Moderate vs. Tfa Alphagen Growth | Mainstay Moderate vs. Eip Growth And | Mainstay Moderate vs. Smallcap Growth Fund |
| Old Westbury vs. Lord Abbett Government | Old Westbury vs. Us Government Securities | Old Westbury vs. Dreyfus Government Cash | Old Westbury vs. Goldman Sachs Government |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |