Correlation Between Growth Strategy and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Growth Strategy and Mainstay Winslow 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 Growth Strategy and Mainstay Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Mainstay Winslow Large, you can compare the effects of market volatilities on Growth Strategy and Mainstay Winslow 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 Growth Strategy with a short position of Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Mainstay Winslow.
Diversification Opportunities for Growth Strategy and Mainstay Winslow
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Growth and Mainstay is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large and Growth Strategy 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 Growth Strategy Fund are associated (or correlated) with Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Growth Strategy i.e., Growth Strategy and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Growth Strategy and Mainstay Winslow
Assuming the 90 days horizon Growth Strategy is expected to generate 1.26 times less return on investment than Mainstay Winslow. But when comparing it to its historical volatility, Growth Strategy Fund is 2.34 times less risky than Mainstay Winslow. It trades about 0.1 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 668.00 in Mainstay Winslow Large on September 12, 2024 and sell it today you would earn a total of 253.00 from holding Mainstay Winslow Large or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. Mainstay Winslow Large
Performance |
| Timeline |
| Growth Strategy |
| Mainstay Winslow Large |
Growth Strategy and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Mainstay Winslow
The main advantage of trading using opposite Growth Strategy and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Growth Strategy vs. Smallcap Growth Fund | Growth Strategy vs. T Rowe Price | Growth Strategy vs. L Abbett Growth | Growth Strategy vs. Rational Defensive Growth |
| Mainstay Winslow vs. Mainstay Sp 500 | Mainstay Winslow vs. Mainstay Balanced Fund | Mainstay Winslow vs. Mainstay Balanced Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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