Correlation Between Science Technology and Mainstay Growth
Can any of the company-specific risk be diversified away by investing in both Science Technology 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 Science Technology and Mainstay Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Science Technology Fund and Mainstay Growth Etf, you can compare the effects of market volatilities on Science Technology 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 Science Technology with a short position of Mainstay Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Technology and Mainstay Growth.
Diversification Opportunities for Science Technology and Mainstay Growth
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Science and Mainstay is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Science Technology 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 Science Technology 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 Science Technology 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 Science Technology i.e., Science Technology and Mainstay Growth go up and down completely randomly.
Pair Corralation between Science Technology and Mainstay Growth
Assuming the 90 days horizon Science Technology Fund is expected to generate 1.85 times more return on investment than Mainstay Growth. However, Science Technology is 1.85 times more volatile than Mainstay Growth Etf. It trades about 0.09 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 1,731 in Science Technology Fund on September 4, 2024 and sell it today you would earn a total of 1,187 from holding Science Technology Fund or generate 68.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Science Technology Fund vs. Mainstay Growth Etf
Performance |
| Timeline |
| Science Technology |
| Mainstay Growth Etf |
Science Technology and Mainstay Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Technology and Mainstay Growth
The main advantage of trading using opposite Science Technology and Mainstay Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science Technology 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.| Science Technology vs. Veea Inc | Science Technology vs. VHAI | Science Technology vs. VivoPower International PLC | Science Technology vs. WEBTOON Entertainment Common |
| Mainstay Growth vs. Mainstay High Yield | Mainstay Growth vs. Mainstay Tax Free | Mainstay Growth vs. Mainstay Income Builder | Mainstay Growth 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |