Correlation Between Mainstay Total and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Mainstay Total and Mainstay Balanced 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 Total and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Total Return and Mainstay Balanced Fund, you can compare the effects of market volatilities on Mainstay Total and Mainstay Balanced 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 Total with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Total and Mainstay Balanced.
Diversification Opportunities for Mainstay Total and Mainstay Balanced
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Total Return and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Mainstay Total 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 Total Return are associated (or correlated) with Mainstay Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Balanced has no effect on the direction of Mainstay Total i.e., Mainstay Total and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Mainstay Total and Mainstay Balanced
If you would invest 2,975 in Mainstay Balanced Fund on August 28, 2024 and sell it today you would earn a total of 307.00 from holding Mainstay Balanced Fund or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mainstay Total Return vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Mainstay Total Return |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mainstay Balanced |
Mainstay Total and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Total and Mainstay Balanced
The main advantage of trading using opposite Mainstay Total and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Total position performs unexpectedly, Mainstay Balanced 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 Balanced will offset losses from the drop in Mainstay Balanced's long position.| Mainstay Total vs. Ep Emerging Markets | Mainstay Total vs. Shelton Emerging Markets | Mainstay Total vs. Western Asset Diversified | Mainstay Total vs. Rbc Emerging Markets |
| Mainstay Balanced vs. Mainstay Tax Free | Mainstay Balanced vs. Mainstay Large Cap | Mainstay Balanced vs. Mainstay Large Cap | Mainstay Balanced 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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