Correlation Between Diversified Income and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Diversified 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 Diversified 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 Diversified Income Fund and Mainstay High Yield, you can compare the effects of market volatilities on Diversified 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 Diversified Income with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Diversified Income and Mainstay High.
Diversification Opportunities for Diversified Income and Mainstay High
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Diversified and Mainstay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Diversified Income Fund 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 Diversified 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 Diversified Income Fund 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 Diversified Income i.e., Diversified Income and Mainstay High go up and down completely randomly.
Pair Corralation between Diversified Income and Mainstay High
Assuming the 90 days horizon Diversified Income Fund is expected to generate about the same return on investment as Mainstay High Yield. However, Diversified Income is 1.44 times more volatile than Mainstay High Yield. It trades about 0.1 of its potential returns per unit of risk. Mainstay High Yield is currently producing about 0.15 per unit of risk. If you would invest 518.00 in Mainstay High Yield on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Mainstay High Yield or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversified Income Fund vs. Mainstay High Yield
Performance |
| Timeline |
| Diversified Income |
| Mainstay High Yield |
Diversified Income and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Diversified Income and Mainstay High
The main advantage of trading using opposite Diversified Income and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Diversified 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.| Diversified Income vs. Mainstay High Yield | Diversified Income vs. Investment Grade Porate | Diversified Income vs. Commodityrealreturn Strategy Fund | Diversified Income vs. Blackrock Core Bond |
| Mainstay High vs. Ab Global Real | Mainstay High vs. Morningstar Global Income | Mainstay High vs. Scharf Global Opportunity | Mainstay High vs. Siit Global Managed |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |