Correlation Between Mainstay Growth and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Mainstay Growth and Mainstay Map 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 Map 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 Map Equity, you can compare the effects of market volatilities on Mainstay Growth and Mainstay Map 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 Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Mainstay Map.
Diversification Opportunities for Mainstay Growth and Mainstay Map
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Mainstay Map go up and down completely randomly.
Pair Corralation between Mainstay Growth and Mainstay Map
Assuming the 90 days horizon Mainstay Growth is expected to generate 1.56 times less return on investment than Mainstay Map. But when comparing it to its historical volatility, Mainstay Growth Etf is 1.29 times less risky than Mainstay Map. It trades about 0.14 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,436 in Mainstay Map Equity on August 27, 2024 and sell it today you would earn a total of 107.00 from holding Mainstay Map Equity or generate 3.11% 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 Map Equity
Performance |
| Timeline |
| Mainstay Growth Etf |
| Mainstay Map Equity |
Mainstay Growth and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Growth and Mainstay Map
The main advantage of trading using opposite Mainstay Growth and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Growth position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map'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 Map vs. Federated Hermes Inflation | Mainstay Map vs. Fidelity Sai Inflationfocused | Mainstay Map vs. Ab Municipal Bond | Mainstay Map vs. Schwab Treasury Inflation |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |