Correlation Between Government Securities and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Government Securities and Mainstay Map 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 Government Securities and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Government Securities Fund and Mainstay Map Equity, you can compare the effects of market volatilities on Government Securities and Mainstay Map 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 Government Securities with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Government Securities and Mainstay Map.
Diversification Opportunities for Government Securities and Mainstay Map
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Government and Mainstay is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Government Securities Fund and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Government Securities 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 Government Securities Fund are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Government Securities i.e., Government Securities and Mainstay Map go up and down completely randomly.
Pair Corralation between Government Securities and Mainstay Map
Assuming the 90 days horizon Government Securities is expected to generate 4.27 times less return on investment than Mainstay Map. But when comparing it to its historical volatility, Government Securities Fund is 2.57 times less risky than Mainstay Map. It trades about 0.09 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,002 in Mainstay Map Equity on September 2, 2024 and sell it today you would earn a total of 269.00 from holding Mainstay Map Equity or generate 13.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Government Securities Fund vs. Mainstay Map Equity
Performance |
| Timeline |
| Government Securities |
| Mainstay Map Equity |
Government Securities and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Government Securities and Mainstay Map
The main advantage of trading using opposite Government Securities and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Government Securities position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Government Securities vs. Sarofim Equity | Government Securities vs. Ms Global Fixed | Government Securities vs. Balanced Fund Retail | Government Securities vs. Ultra Short Fixed Income |
| Mainstay Map vs. Mainstay High Yield | Mainstay Map vs. Mainstay Tax Free | Mainstay Map vs. Mainstay Income Builder | Mainstay Map 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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