Correlation Between Mainstay Income and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Mainstay High 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 Mainstay High 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 Mainstay High Yield, you can compare the effects of market volatilities on Mainstay Income and Mainstay High 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 Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay High.
Diversification Opportunities for Mainstay Income and Mainstay High
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay High go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay High
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 3.62 times more return on investment than Mainstay High. However, Mainstay Income is 3.62 times more volatile than Mainstay High Yield. It trades about 0.13 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.19 per unit of risk. If you would invest 2,079 in Mainstay Income Builder on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Mainstay Income Builder or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay Income Builder vs. Mainstay High Yield
Performance |
| Timeline |
| Mainstay Income Builder |
| Mainstay High Yield |
Mainstay Income and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Mainstay High
The main advantage of trading using opposite Mainstay Income and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Mainstay Income vs. Capital Income Builder | Mainstay Income vs. Capital Income Builder | Mainstay Income vs. Capital Income Builder | Mainstay Income vs. HUMANA INC |
| Mainstay High vs. Prudential High Yield | Mainstay High vs. HUMANA INC | Mainstay High vs. Aquagold International | Mainstay High vs. Barloworld Ltd ADR |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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