Correlation Between Mainstay Income and Henderson Strategic
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Henderson Strategic 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 Income and Henderson Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Income Builder and Henderson Strategic Income, you can compare the effects of market volatilities on Mainstay Income and Henderson Strategic 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 Income with a short position of Henderson Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Henderson Strategic.
Diversification Opportunities for Mainstay Income and Henderson Strategic
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Henderson is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Henderson Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson Strategic and Mainstay Income 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 Income Builder are associated (or correlated) with Henderson Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson Strategic has no effect on the direction of Mainstay Income i.e., Mainstay Income and Henderson Strategic go up and down completely randomly.
Pair Corralation between Mainstay Income and Henderson Strategic
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 1.49 times more return on investment than Henderson Strategic. However, Mainstay Income is 1.49 times more volatile than Henderson Strategic Income. It trades about 0.29 of its potential returns per unit of risk. Henderson Strategic Income is currently generating about -0.03 per unit of risk. If you would invest 2,017 in Mainstay Income Builder on November 2, 2024 and sell it today you would earn a total of 65.00 from holding Mainstay Income Builder or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Henderson Strategic Income
Performance |
| Timeline |
| Mainstay Income Builder |
| Henderson Strategic |
Mainstay Income and Henderson Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Henderson Strategic
The main advantage of trading using opposite Mainstay Income and Henderson Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Henderson Strategic 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 Henderson Strategic will offset losses from the drop in Henderson Strategic's long position.| Mainstay Income vs. Mainstay Vertible Fund | Mainstay Income vs. Mfs Modity Strategy | Mainstay Income vs. Mainstay High Yield | Mainstay Income vs. Mainstay Balanced Fund |
| Henderson Strategic vs. Janus Research Fund | Henderson Strategic vs. Janus Research Fund | Henderson Strategic vs. Janus Research Fund | Henderson Strategic vs. Janus Research Fund |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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