Correlation Between Mainstay Common and Small Company
Can any of the company-specific risk be diversified away by investing in both Mainstay Common and Small Company 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 Small Company 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 Small Pany Growth, you can compare the effects of market volatilities on Mainstay Common and Small Company 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 Small Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Common and Small Company.
Diversification Opportunities for Mainstay Common and Small Company
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MAINSTAY and Small is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mon Stock and Small Pany Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Pany Growth 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 Small Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Pany Growth has no effect on the direction of Mainstay Common i.e., Mainstay Common and Small Company go up and down completely randomly.
Pair Corralation between Mainstay Common and Small Company
Assuming the 90 days horizon Mainstay Common is expected to generate 3.74 times less return on investment than Small Company. But when comparing it to its historical volatility, Mainstay Mon Stock is 2.17 times less risky than Small Company. It trades about 0.38 of its potential returns per unit of risk. Small Pany Growth is currently generating about 0.66 of returns per unit of risk over similar time horizon. If you would invest 1,285 in Small Pany Growth on September 4, 2024 and sell it today you would earn a total of 384.00 from holding Small Pany Growth or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Mainstay Mon Stock vs. Small Pany Growth
Performance |
| Timeline |
| Mainstay Mon Stock |
| Small Pany Growth |
Mainstay Common and Small Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Common and Small Company
The main advantage of trading using opposite Mainstay Common and Small Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Common position performs unexpectedly, Small Company 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 Small Company will offset losses from the drop in Small Company's long position.| Mainstay Common vs. Small Pany Growth | Mainstay Common vs. Pace Smallmedium Growth | Mainstay Common vs. Artisan Small Cap | Mainstay Common vs. L Abbett Growth |
| Small Company vs. Mid Cap Growth | Small Company vs. Growth Portfolio Class | Small Company vs. Morgan Stanley Multi | Small Company vs. Emerging Markets Portfolio |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |