Correlation Between Mainstay Moderate and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Mainstay Pinestone 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 Pinestone 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 Pinestone Equity, you can compare the effects of market volatilities on Mainstay Moderate and Mainstay Pinestone 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 Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Mainstay Pinestone.
Diversification Opportunities for Mainstay Moderate and Mainstay Pinestone
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation and Mainstay Pinestone Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone Equity 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 Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone Equity has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Mainstay Pinestone
Assuming the 90 days horizon Mainstay Moderate is expected to generate 1.56 times less return on investment than Mainstay Pinestone. But when comparing it to its historical volatility, Mainstay Moderate Allocation is 1.39 times less risky than Mainstay Pinestone. It trades about 0.08 of its potential returns per unit of risk. Mainstay Pinestone Equity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,629 in Mainstay Pinestone Equity on August 27, 2024 and sell it today you would earn a total of 355.00 from holding Mainstay Pinestone Equity or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 63.31% |
| Values | Daily Returns |
Mainstay Moderate Allocation vs. Mainstay Pinestone Equity
Performance |
| Timeline |
| Mainstay Moderate |
| Mainstay Pinestone Equity |
Mainstay Moderate and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Mainstay Pinestone
The main advantage of trading using opposite Mainstay Moderate and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Mainstay Moderate vs. Mainstay High Yield | Mainstay Moderate vs. Mainstay Tax Free | Mainstay Moderate vs. Mainstay Income Builder | Mainstay Moderate vs. Mainstay Large Cap |
| Mainstay Pinestone vs. Franklin Government Money | Mainstay Pinestone vs. Aim Investment Secs | Mainstay Pinestone vs. American Century California | Mainstay Pinestone vs. Institutional Fiduciary Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |