Correlation Between Mainstay Moderate and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Mainstay Map 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 Map 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 Map Equity, you can compare the effects of market volatilities on Mainstay Moderate and Mainstay Map 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 Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Mainstay Map.
Diversification Opportunities for Mainstay Moderate and Mainstay Map
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map 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 Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Mainstay Map go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Mainstay Map
Assuming the 90 days horizon Mainstay Moderate Allocation is expected to generate 0.65 times more return on investment than Mainstay Map. However, Mainstay Moderate Allocation is 1.53 times less risky than Mainstay Map. It trades about 0.09 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.06 per unit of risk. If you would invest 1,190 in Mainstay Moderate Allocation on August 30, 2024 and sell it today you would earn a total of 298.00 from holding Mainstay Moderate Allocation or generate 25.04% 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 Map Equity
Performance |
| Timeline |
| Mainstay Moderate |
| Mainstay Map Equity |
Mainstay Moderate and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Mainstay Map
The main advantage of trading using opposite Mainstay Moderate and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Mainstay Moderate vs. Alphacentric Lifesci Healthcare | Mainstay Moderate vs. Fidelity Advisor Health | Mainstay Moderate vs. Alger Health Sciences | Mainstay Moderate vs. Deutsche Health And |
| Mainstay Map vs. T Rowe Price | Mainstay Map vs. Rbc Microcap Value | Mainstay Map vs. Volumetric Fund Volumetric | Mainstay Map vs. Qs Large Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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