Correlation Between Mainstay Growth and Mainstay Nerstone
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Mainstay Nerstone 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 Growth and Mainstay Nerstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Growth Etf and Mainstay Nerstone Growth, you can compare the effects of market volatilities on Mainstay Growth and Mainstay Nerstone 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 Growth with a short position of Mainstay Nerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Mainstay Nerstone.
Diversification Opportunities for Mainstay Growth and Mainstay Nerstone
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth and Mainstay Growth 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 Growth Etf are associated (or correlated) with Mainstay Nerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Mainstay Nerstone go up and down completely randomly.
Pair Corralation between Mainstay Growth and Mainstay Nerstone
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 0.58 times more return on investment than Mainstay Nerstone. However, Mainstay Growth Etf is 1.73 times less risky than Mainstay Nerstone. It trades about 0.21 of its potential returns per unit of risk. Mainstay Nerstone Growth is currently generating about 0.07 per unit of risk. If you would invest 1,458 in Mainstay Growth Etf on August 31, 2024 and sell it today you would earn a total of 43.00 from holding Mainstay Growth Etf or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Mainstay Nerstone Growth
Performance |
| Timeline |
| Mainstay Growth Etf |
| Mainstay Nerstone Growth |
Mainstay Growth and Mainstay Nerstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Mainstay Nerstone
The main advantage of trading using opposite Mainstay Growth and Mainstay Nerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Mainstay Nerstone 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 Nerstone will offset losses from the drop in Mainstay Nerstone's long position.| Mainstay Growth vs. Simt Real Estate | Mainstay Growth vs. Great West Real Estate | Mainstay Growth vs. Jhancock Real Estate | Mainstay Growth vs. Virtus Real Estate |
| Mainstay Nerstone vs. Financials Ultrasector Profund | Mainstay Nerstone vs. Icon Financial Fund | Mainstay Nerstone vs. Blackrock Financial Institutions | Mainstay Nerstone vs. Royce Global Financial |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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