Correlation Between Mainstay Growth and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Mainstay Moderate 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 Moderate 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 Moderate Etf, you can compare the effects of market volatilities on Mainstay Growth and Mainstay Moderate 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 Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Mainstay Moderate.
Diversification Opportunities for Mainstay Growth and Mainstay Moderate
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 Moderate Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Etf 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 Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Etf has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Growth and Mainstay Moderate
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 1.19 times more return on investment than Mainstay Moderate. However, Mainstay Growth is 1.19 times more volatile than Mainstay Moderate Etf. It trades about 0.19 of its potential returns per unit of risk. Mainstay Moderate Etf is currently generating about 0.17 per unit of risk. If you would invest 1,402 in Mainstay Growth Etf on November 3, 2024 and sell it today you would earn a total of 38.00 from holding Mainstay Growth Etf or generate 2.71% 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 Moderate Etf
Performance |
| Timeline |
| Mainstay Growth Etf |
| Mainstay Moderate Etf |
Mainstay Growth and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Mainstay Moderate
The main advantage of trading using opposite Mainstay Growth and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay Growth vs. Artisan Select Equity | Mainstay Growth vs. Transamerica International Equity | Mainstay Growth vs. Gmo Global Equity | Mainstay Growth vs. Aqr Equity Market |
| Mainstay Moderate vs. Mainstay High Yield | Mainstay Moderate vs. Mainstay Tax Free | Mainstay Moderate vs. Mainstay Income Builder | Mainstay Moderate vs. Mainstay 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 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.
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