Correlation Between Mainstay Total and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Total and Mainstay Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Mainstay Total and Mainstay Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Total and Mainstay Short.
Diversification Opportunities for Mainstay Total and Mainstay Short
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Mainstay is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Total Return and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Total i.e., Mainstay Total and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Total and Mainstay Short
Assuming the 90 days horizon Mainstay Total Return is expected to under-perform the Mainstay Short. In addition to that, Mainstay Total is 3.64 times more volatile than Mainstay Short Duration. It trades about -0.05 of its total potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.28 per unit of volatility. If you would invest 954.00 in Mainstay Short Duration on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Mainstay Short Duration or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Total Return vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Total Return |
| Mainstay Short Duration |
Mainstay Total and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Total and Mainstay Short
The main advantage of trading using opposite Mainstay Total and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Total position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Total vs. Semiconductor Ultrasector Profund | Mainstay Total vs. Lord Abbett Diversified | Mainstay Total vs. Ab E Opportunities | Mainstay Total vs. Volumetric Fund Volumetric |
| Mainstay Short vs. Mainstay Tax Free | Mainstay Short vs. Mainstay Large Cap | Mainstay Short vs. Mainstay Large Cap | Mainstay Short 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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