Correlation Between Growth Opportunities and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Growth Opportunities and Mainstay Growth 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 Opportunities and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Opportunities Fund and Mainstay Growth Etf, you can compare the effects of market volatilities on Growth Opportunities and Mainstay Growth 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 Opportunities with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Opportunities and Mainstay Growth.
Diversification Opportunities for Growth Opportunities and Mainstay Growth
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GROWTH and Mainstay is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Growth Opportunities Fund and Mainstay Growth Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Growth Etf and Growth Opportunities 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 Opportunities Fund are associated (or correlated) with Mainstay Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Growth Etf has no effect on the direction of Growth Opportunities i.e., Growth Opportunities and Mainstay Growth go up and down completely randomly.
Pair Corralation between Growth Opportunities and Mainstay Growth
Assuming the 90 days horizon Growth Opportunities Fund is expected to generate 1.49 times more return on investment than Mainstay Growth. However, Growth Opportunities is 1.49 times more volatile than Mainstay Growth Etf. It trades about 0.11 of its potential returns per unit of risk. Mainstay Growth Etf is currently generating about 0.08 per unit of risk. If you would invest 3,320 in Growth Opportunities Fund on September 2, 2024 and sell it today you would earn a total of 2,536 from holding Growth Opportunities Fund or generate 76.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Opportunities Fund vs. Mainstay Growth Etf
Performance |
| Timeline |
| Growth Opportunities |
| Mainstay Growth Etf |
Growth Opportunities and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Opportunities and Mainstay Growth
The main advantage of trading using opposite Growth Opportunities and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Opportunities position performs unexpectedly, Mainstay Growth 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 Growth will offset losses from the drop in Mainstay Growth's long position.| Growth Opportunities vs. Mid Cap Value Profund | Growth Opportunities vs. Mutual Of America | Growth Opportunities vs. American Century Etf | Growth Opportunities vs. Heartland Value Plus |
| Mainstay Growth vs. Balanced Fund Investor | Mainstay Growth vs. Growth Opportunities Fund | Mainstay Growth vs. Semiconductor Ultrasector Profund | Mainstay Growth vs. Artisan Thematic 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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