Correlation Between Mainstay Conservative and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Mainstay Conservative and Mainstay Balanced 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 Conservative and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Conservative Etf and Mainstay Balanced Fund, you can compare the effects of market volatilities on Mainstay Conservative and Mainstay Balanced 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 Conservative with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Conservative and Mainstay Balanced.
Diversification Opportunities for Mainstay Conservative and Mainstay Balanced
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 Conservative Etf and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Mainstay Conservative 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 Conservative Etf are associated (or correlated) with Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Mainstay Conservative i.e., Mainstay Conservative and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Mainstay Conservative and Mainstay Balanced
Assuming the 90 days horizon Mainstay Conservative is expected to generate 2.33 times less return on investment than Mainstay Balanced. But when comparing it to its historical volatility, Mainstay Conservative Etf is 1.38 times less risky than Mainstay Balanced. It trades about 0.12 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,161 in Mainstay Balanced Fund on August 27, 2024 and sell it today you would earn a total of 74.00 from holding Mainstay Balanced Fund or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Conservative Etf vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Mainstay Conservative Etf |
| Mainstay Balanced |
Mainstay Conservative and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Conservative and Mainstay Balanced
The main advantage of trading using opposite Mainstay Conservative and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Conservative position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Mainstay Conservative vs. Mainstay High Yield | Mainstay Conservative vs. Mainstay Tax Free | Mainstay Conservative vs. Mainstay Income Builder | Mainstay Conservative vs. Mainstay Large Cap |
| Mainstay Balanced vs. Commonwealth Real Estate | Mainstay Balanced vs. Amg Managers Centersquare | Mainstay Balanced vs. Franklin Real Estate | Mainstay Balanced vs. Real Estate Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |