Correlation Between Mainstay Growth and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Mainstay High 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 High 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 High Yield, you can compare the effects of market volatilities on Mainstay Growth and Mainstay High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Mainstay High.
Diversification Opportunities for Mainstay Growth and Mainstay High
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Mainstay High go up and down completely randomly.
Pair Corralation between Mainstay Growth and Mainstay High
Assuming the 90 days horizon Mainstay Growth Etf is expected to generate 4.2 times more return on investment than Mainstay High. However, Mainstay Growth is 4.2 times more volatile than Mainstay High Yield. It trades about 0.2 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.16 per unit of risk. If you would invest 1,456 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Growth Etf vs. Mainstay High Yield
Performance |
| Timeline |
| Mainstay Growth Etf |
| Mainstay High Yield |
Mainstay Growth and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Mainstay High
The main advantage of trading using opposite Mainstay Growth and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Mainstay Growth vs. Calamos Short Term Bond | Mainstay Growth vs. T Rowe Price | Mainstay Growth vs. Inflation Protected Bond Fund | Mainstay Growth vs. Artisan High Income |
| Mainstay High vs. Vanguard High Yield Corporate | Mainstay High vs. Vanguard High Yield Porate | Mainstay High vs. Blackrock Hi Yld | Mainstay High vs. Blackrock High Yield |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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