Correlation Between Mainstay Map and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Mainstay 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 Map and Mainstay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Map Equity and Mainstay Sp 500, you can compare the effects of market volatilities on Mainstay Map and Mainstay 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 Map with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Mainstay.
Diversification Opportunities for Mainstay Map and Mainstay
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 and Mainstay Map 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 Map Equity are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Map i.e., Mainstay Map and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay Map and Mainstay
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 0.99 times more return on investment than Mainstay. However, Mainstay Map Equity is 1.01 times less risky than Mainstay. It trades about 0.2 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.16 per unit of risk. If you would invest 3,167 in Mainstay Map Equity on August 29, 2024 and sell it today you would earn a total of 120.00 from holding Mainstay Map Equity or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Map Equity vs. Mainstay Sp 500
Performance |
| Timeline |
| Mainstay Map Equity |
| Mainstay Sp 500 |
Mainstay Map and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Mainstay
The main advantage of trading using opposite Mainstay Map and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Mainstay Map vs. T Rowe Price | Mainstay Map vs. Rbc Microcap Value | Mainstay Map vs. Volumetric Fund Volumetric | Mainstay Map vs. Qs Large Cap |
| Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard 500 Index | Mainstay vs. Vanguard Total Stock | Mainstay vs. Vanguard Total Stock |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |