Correlation Between Mainstay Floating and Mainstay International
Can any of the company-specific risk be diversified away by investing in both Mainstay Floating and Mainstay International 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 Floating and Mainstay International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Floating Rate and Mainstay International Opportunities, you can compare the effects of market volatilities on Mainstay Floating and Mainstay International 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 Floating with a short position of Mainstay International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Floating and Mainstay International.
Diversification Opportunities for Mainstay Floating and Mainstay International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Floating Rate and Mainstay International Opportu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay International and Mainstay Floating 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 Floating Rate are associated (or correlated) with Mainstay International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay International has no effect on the direction of Mainstay Floating i.e., Mainstay Floating and Mainstay International go up and down completely randomly.
Pair Corralation between Mainstay Floating and Mainstay International
Assuming the 90 days horizon Mainstay Floating is expected to generate 18.96 times less return on investment than Mainstay International. But when comparing it to its historical volatility, Mainstay Floating Rate is 5.1 times less risky than Mainstay International. It trades about 0.08 of its potential returns per unit of risk. Mainstay International Opportunities is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 783.00 in Mainstay International Opportunities on November 28, 2024 and sell it today you would earn a total of 34.00 from holding Mainstay International Opportunities or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Floating Rate vs. Mainstay International Opportu
Performance |
| Timeline |
| Mainstay Floating Rate |
| Mainstay International |
Mainstay Floating and Mainstay International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Floating and Mainstay International
The main advantage of trading using opposite Mainstay Floating and Mainstay International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Floating position performs unexpectedly, Mainstay International 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 International will offset losses from the drop in Mainstay International's long position.| Mainstay Floating vs. T Rowe Price | Mainstay Floating vs. Red Oak Technology | Mainstay Floating vs. Allianzgi Technology Fund | Mainstay Floating vs. Columbia Global Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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