Correlation Between Mainstay Growth and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Mainstay Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Mainstay Growth and Mainstay Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Mainstay Short.
Diversification Opportunities for Mainstay Growth and Mainstay Short
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Growth and Mainstay Short
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 5.05 times more return on investment than Mainstay Short. However, Mainstay Growth is 5.05 times more volatile than Mainstay Short Duration. It trades about 0.08 of its potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.21 per unit of risk. If you would invest 1,142 in Mainstay Growth Etf on August 25, 2024 and sell it today you would earn a total of 329.00 from holding Mainstay Growth Etf or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Growth Etf |
| Mainstay Short Duration |
Mainstay Growth and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Mainstay Short
The main advantage of trading using opposite Mainstay Growth and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Growth vs. Mainstay High Yield | Mainstay Growth vs. Mainstay Tax Free | Mainstay Growth vs. Mainstay Income Builder | Mainstay Growth vs. Mainstay Large Cap |
| Mainstay Short vs. International Investors Gold | Mainstay Short vs. Sprott Gold Equity | Mainstay Short vs. Wells Fargo Advantage | Mainstay Short vs. Wells Fargo Advantage |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |