Correlation Between Mainstay Unconstrained and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Mainstay Unconstrained and Stringer Growth 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 Unconstrained and Stringer Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Unconstrained Bond and Stringer Growth Fund, you can compare the effects of market volatilities on Mainstay Unconstrained and Stringer Growth 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 Unconstrained with a short position of Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Unconstrained and Stringer Growth.
Diversification Opportunities for Mainstay Unconstrained and Stringer Growth
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Stringer is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Unconstrained Bond and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth and Mainstay Unconstrained 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 Unconstrained Bond are associated (or correlated) with Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Mainstay Unconstrained i.e., Mainstay Unconstrained and Stringer Growth go up and down completely randomly.
Pair Corralation between Mainstay Unconstrained and Stringer Growth
Assuming the 90 days horizon Mainstay Unconstrained is expected to generate 2.66 times less return on investment than Stringer Growth. But when comparing it to its historical volatility, Mainstay Unconstrained Bond is 4.02 times less risky than Stringer Growth. It trades about 0.1 of its potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,244 in Stringer Growth Fund on October 21, 2024 and sell it today you would earn a total of 11.00 from holding Stringer Growth Fund or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Unconstrained Bond vs. Stringer Growth Fund
Performance |
| Timeline |
| Mainstay Unconstrained |
| Stringer Growth |
Mainstay Unconstrained and Stringer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Unconstrained and Stringer Growth
The main advantage of trading using opposite Mainstay Unconstrained and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Unconstrained position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth's long position.| Mainstay Unconstrained vs. Stringer Growth Fund | Mainstay Unconstrained vs. Tfa Alphagen Growth | Mainstay Unconstrained vs. Eip Growth And | Mainstay Unconstrained vs. Morningstar Aggressive Growth |
| Stringer Growth vs. Siit High Yield | Stringer Growth vs. Artisan High Income | Stringer Growth vs. Ab High Income | Stringer Growth vs. Prudential High Yield |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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