Correlation Between Short-term Government and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Short-term Government and Mainstay Income 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 Short-term Government and Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Term Government Fund and Mainstay Income Builder, you can compare the effects of market volatilities on Short-term Government and Mainstay Income 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 Short-term Government with a short position of Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short-term Government and Mainstay Income.
Diversification Opportunities for Short-term Government and Mainstay Income
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Short-term and Mainstay is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Government Fund and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder and Short-term Government 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 Short Term Government Fund are associated (or correlated) with Mainstay Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Short-term Government i.e., Short-term Government and Mainstay Income go up and down completely randomly.
Pair Corralation between Short-term Government and Mainstay Income
Assuming the 90 days horizon Short-term Government is expected to generate 22.09 times less return on investment than Mainstay Income. But when comparing it to its historical volatility, Short Term Government Fund is 5.85 times less risky than Mainstay Income. It trades about 0.06 of its potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,042 in Mainstay Income Builder on November 3, 2024 and sell it today you would earn a total of 53.00 from holding Mainstay Income Builder or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Short Term Government Fund vs. Mainstay Income Builder
Performance |
| Timeline |
| Short Term Government |
| Mainstay Income Builder |
Short-term Government and Mainstay Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short-term Government and Mainstay Income
The main advantage of trading using opposite Short-term Government and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short-term Government position performs unexpectedly, Mainstay Income 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 Income will offset losses from the drop in Mainstay Income's long position.| Short-term Government vs. Gugg Actv Invmt | Short-term Government vs. Gmo High Yield | Short-term Government vs. Rbc Bluebay Global | Short-term Government vs. Barings High Yield |
| Mainstay Income vs. Morningstar Growth Etf | Mainstay Income vs. Eip Growth And | Mainstay Income vs. Rational Defensive Growth | Mainstay Income vs. T Rowe Price |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |