Correlation Between Saat Core and Mainstay Equity
Can any of the company-specific risk be diversified away by investing in both Saat Core and Mainstay Equity 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 Saat Core and Mainstay Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat E Market and Mainstay Equity Etf, you can compare the effects of market volatilities on Saat Core and Mainstay Equity 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 Saat Core with a short position of Mainstay Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Core and Mainstay Equity.
Diversification Opportunities for Saat Core and Mainstay Equity
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Mainstay is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Saat E Market and Mainstay Equity Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Equity Etf and Saat Core 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 Saat E Market are associated (or correlated) with Mainstay Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Equity Etf has no effect on the direction of Saat Core i.e., Saat Core and Mainstay Equity go up and down completely randomly.
Pair Corralation between Saat Core and Mainstay Equity
Assuming the 90 days horizon Saat Core is expected to generate 1.89 times less return on investment than Mainstay Equity. But when comparing it to its historical volatility, Saat E Market is 1.04 times less risky than Mainstay Equity. It trades about 0.04 of its potential returns per unit of risk. Mainstay Equity Etf is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,188 in Mainstay Equity Etf on August 28, 2024 and sell it today you would earn a total of 442.00 from holding Mainstay Equity Etf or generate 37.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat E Market vs. Mainstay Equity Etf
Performance |
| Timeline |
| Saat E Market |
| Mainstay Equity Etf |
Saat Core and Mainstay Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Core and Mainstay Equity
The main advantage of trading using opposite Saat Core and Mainstay Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Core position performs unexpectedly, Mainstay Equity 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 Equity will offset losses from the drop in Mainstay Equity's long position.| Saat Core vs. Saat Tax Managed Aggressive | Saat Core vs. Saat Moderate Strategy | Saat Core vs. Simt Tax Managed Managed | Saat Core vs. Hartford Schroders Smallmid |
| Mainstay Equity vs. Mainstay High Yield | Mainstay Equity vs. Mainstay Tax Free | Mainstay Equity vs. Mainstay Income Builder | Mainstay Equity vs. Mainstay Large Cap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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