Correlation Between Victory Strategic and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Victory Strategic 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 Victory Strategic and Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Strategic Allocation and Mainstay Income Builder, you can compare the effects of market volatilities on Victory Strategic 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 Victory Strategic with a short position of Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Strategic and Mainstay Income.
Diversification Opportunities for Victory Strategic and Mainstay Income
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between VICTORY and Mainstay is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Victory Strategic Allocation 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 Victory Strategic 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 Victory Strategic Allocation 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 Victory Strategic i.e., Victory Strategic and Mainstay Income go up and down completely randomly.
Pair Corralation between Victory Strategic and Mainstay Income
Assuming the 90 days horizon Victory Strategic is expected to generate 1.23 times less return on investment than Mainstay Income. But when comparing it to its historical volatility, Victory Strategic Allocation is 1.01 times less risky than Mainstay Income. It trades about 0.11 of its potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,950 in Mainstay Income Builder on September 2, 2024 and sell it today you would earn a total of 181.00 from holding Mainstay Income Builder or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Strategic Allocation vs. Mainstay Income Builder
Performance |
| Timeline |
| Victory Strategic |
| Mainstay Income Builder |
Victory Strategic and Mainstay Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Strategic and Mainstay Income
The main advantage of trading using opposite Victory Strategic and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Strategic 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.| Victory Strategic vs. Victory Rs International | Victory Strategic vs. Victory Sycamore Established | Victory Strategic vs. Victory Integrity Discovery | Victory Strategic vs. Victory Munder Multi Cap |
| Mainstay Income vs. T Rowe Price | Mainstay Income vs. Strategic Allocation Aggressive | Mainstay Income vs. Victory Strategic Allocation | Mainstay Income vs. Legg Mason Bw |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |