Correlation Between Mainstay Common and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Common 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 Common 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 Mon Stock and Mainstay Moderate Etf, you can compare the effects of market volatilities on Mainstay Common 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 Common with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Common and Mainstay Moderate.
Diversification Opportunities for Mainstay Common and Mainstay Moderate
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mon Stock 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 Common 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 Mon Stock 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 Common i.e., Mainstay Common and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Common and Mainstay Moderate
Assuming the 90 days horizon Mainstay Mon Stock is expected to generate 1.96 times more return on investment than Mainstay Moderate. However, Mainstay Common is 1.96 times more volatile than Mainstay Moderate Etf. It trades about 0.24 of its potential returns per unit of risk. Mainstay Moderate Etf is currently generating about 0.13 per unit of risk. If you would invest 3,421 in Mainstay Mon Stock on August 27, 2024 and sell it today you would earn a total of 169.00 from holding Mainstay Mon Stock or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mon Stock vs. Mainstay Moderate Etf
Performance |
| Timeline |
| Mainstay Mon Stock |
| Mainstay Moderate Etf |
Mainstay Common and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Common and Mainstay Moderate
The main advantage of trading using opposite Mainstay Common and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Common 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 Common vs. Mainstay High Yield | Mainstay Common vs. Mainstay Tax Free | Mainstay Common vs. Mainstay Income Builder | Mainstay Common vs. Mainstay Large Cap |
| Mainstay Moderate vs. Prudential Health Sciences | Mainstay Moderate vs. Fidelity Advisor Health | Mainstay Moderate vs. Health Biotchnology Portfolio | Mainstay Moderate vs. Highland Longshort Healthcare |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |