Correlation Between Mainstay and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Mainstay and Mainstay Winslow 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 and Mainstay Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Sp 500 and Mainstay Winslow Large, you can compare the effects of market volatilities on Mainstay and Mainstay Winslow 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 with a short position of Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay and Mainstay Winslow.
Diversification Opportunities for Mainstay and Mainstay Winslow
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Sp 500 and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large and Mainstay 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 Sp 500 are associated (or correlated) with Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Mainstay i.e., Mainstay and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Mainstay and Mainstay Winslow
Assuming the 90 days horizon Mainstay Sp 500 is expected to generate 0.79 times more return on investment than Mainstay Winslow. However, Mainstay Sp 500 is 1.27 times less risky than Mainstay Winslow. It trades about 0.07 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.03 per unit of risk. If you would invest 6,457 in Mainstay Sp 500 on October 21, 2024 and sell it today you would earn a total of 76.00 from holding Mainstay Sp 500 or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Sp 500 vs. Mainstay Winslow Large
Performance |
| Timeline |
| Mainstay Sp 500 |
| Mainstay Winslow Large |
Mainstay and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay and Mainstay Winslow
The main advantage of trading using opposite Mainstay and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Mainstay vs. Mesirow Financial Small | Mainstay vs. Financial Industries Fund | Mainstay vs. Angel Oak Financial | Mainstay vs. Davis Financial Fund |
| Mainstay Winslow vs. Mainstay High Yield | Mainstay Winslow vs. Mainstay Tax Free | Mainstay Winslow vs. Mainstay Income Builder | Mainstay Winslow vs. Mainstay Large Cap |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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