Correlation Between Investment Grade and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Investment Grade 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 Investment Grade and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Grade Porate and Mainstay High Yield, you can compare the effects of market volatilities on Investment Grade 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 Investment Grade with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Grade and Mainstay High.
Diversification Opportunities for Investment Grade and Mainstay High
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Investment and Mainstay is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Investment Grade Porate 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 Investment Grade 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 Investment Grade Porate 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 Investment Grade i.e., Investment Grade and Mainstay High go up and down completely randomly.
Pair Corralation between Investment Grade and Mainstay High
Assuming the 90 days horizon Investment Grade is expected to generate 1.54 times less return on investment than Mainstay High. In addition to that, Investment Grade is 1.76 times more volatile than Mainstay High Yield. It trades about 0.05 of its total potential returns per unit of risk. Mainstay High Yield is currently generating about 0.14 per unit of volatility. If you would invest 446.00 in Mainstay High Yield on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Mainstay High Yield or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investment Grade Porate vs. Mainstay High Yield
Performance |
| Timeline |
| Investment Grade Porate |
| Mainstay High Yield |
Investment Grade and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Grade and Mainstay High
The main advantage of trading using opposite Investment Grade and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Grade 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.| Investment Grade vs. Nasdaq 100 2x Strategy | Investment Grade vs. Commodities Strategy Fund | Investment Grade vs. The Emerging Markets | Investment Grade vs. T Rowe Price |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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