Correlation Between Mainstay Conservative and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay Conservative and Mainstay 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 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 Sp 500, you can compare the effects of market volatilities on Mainstay Conservative and Mainstay 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Conservative and Mainstay.
Diversification Opportunities for Mainstay Conservative and Mainstay
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Conservative Etf and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Conservative i.e., Mainstay Conservative and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay Conservative and Mainstay
Assuming the 90 days horizon Mainstay Conservative is expected to generate 1.91 times less return on investment than Mainstay. But when comparing it to its historical volatility, Mainstay Conservative Etf is 1.96 times less risky than Mainstay. It trades about 0.37 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 6,363 in Mainstay Sp 500 on September 1, 2024 and sell it today you would earn a total of 371.00 from holding Mainstay Sp 500 or generate 5.83% 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 Sp 500
Performance |
| Timeline |
| Mainstay Conservative Etf |
| Mainstay Sp 500 |
Mainstay Conservative and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Conservative and Mainstay
The main advantage of trading using opposite Mainstay Conservative and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Conservative position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay'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 vs. T Rowe Price | Mainstay vs. T Rowe Price | Mainstay vs. Tax Managed Large Cap | Mainstay vs. T Rowe Price |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |