Correlation Between Mainstay Moderate and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive, you can compare the effects of market volatilities on Mainstay Moderate and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Multimanager Lifestyle.
Diversification Opportunities for Mainstay Moderate and Multimanager Lifestyle
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and MULTIMANAGER is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Multimanager Lifestyle
If you would invest 1,432 in Multimanager Lifestyle Aggressive on September 3, 2024 and sell it today you would earn a total of 125.00 from holding Multimanager Lifestyle Aggressive or generate 8.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Mainstay Moderate Allocation vs. Multimanager Lifestyle Aggress
Performance |
| Timeline |
| Mainstay Moderate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Multimanager Lifestyle |
Mainstay Moderate and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Multimanager Lifestyle
The main advantage of trading using opposite Mainstay Moderate and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Mainstay Moderate vs. Multimanager Lifestyle Aggressive | Mainstay Moderate vs. Nuveen High Income | Mainstay Moderate vs. Vanguard Star Fund | Mainstay Moderate vs. Calvert High Yield |
| Multimanager Lifestyle vs. American Funds Growth | Multimanager Lifestyle vs. American Funds Growth | Multimanager Lifestyle vs. Franklin Mutual Shares | Multimanager Lifestyle vs. Franklin Mutual Shares |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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