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
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Diversified and Mainstay is 0.58. 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 1.31 times more return on investment than Mainstay High. However, Diversified Income is 1.31 times more volatile than Mainstay High Yield. It trades about 0.28 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.15 per unit of risk. If you would invest 961.00 in Diversified Income Fund on November 9, 2024 and sell it today you would earn a total of 14.00 from holding Diversified Income Fund or generate 1.46% 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. Fzdaqx | Mainstay High vs. Ftufox | Mainstay High vs. Wmcanx | Mainstay High vs. Small Pany Growth |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |