Correlation Between Needham Aggressive and Mainstay Balanced
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive 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 Needham Aggressive and Mainstay Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Mainstay Balanced Fund, you can compare the effects of market volatilities on Needham Aggressive 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 Needham Aggressive with a short position of Mainstay Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Mainstay Balanced.
Diversification Opportunities for Needham Aggressive and Mainstay Balanced
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Needham and Mainstay is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Mainstay Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Balanced and Needham Aggressive 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 Needham Aggressive Growth 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 Needham Aggressive i.e., Needham Aggressive and Mainstay Balanced go up and down completely randomly.
Pair Corralation between Needham Aggressive and Mainstay Balanced
Assuming the 90 days horizon Needham Aggressive Growth is expected to generate 2.62 times more return on investment than Mainstay Balanced. However, Needham Aggressive is 2.62 times more volatile than Mainstay Balanced Fund. It trades about 0.24 of its potential returns per unit of risk. Mainstay Balanced Fund is currently generating about 0.39 per unit of risk. If you would invest 4,866 in Needham Aggressive Growth on October 20, 2024 and sell it today you would earn a total of 269.00 from holding Needham Aggressive Growth or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Mainstay Balanced Fund
Performance |
| Timeline |
| Needham Aggressive Growth |
| Mainstay Balanced |
Needham Aggressive and Mainstay Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Mainstay Balanced
The main advantage of trading using opposite Needham Aggressive and Mainstay Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive 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.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Mainstay Balanced vs. Qs Global Equity | Mainstay Balanced vs. Transamerica Asset Allocation | Mainstay Balanced vs. Morningstar Global Income | Mainstay Balanced vs. Dreyfusstandish Global Fixed |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |