Correlation Between Vanguard Star and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Vanguard Star and Mainstay Moderate 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 Vanguard Star and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Star Fund and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Vanguard Star and Mainstay Moderate 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 Vanguard Star with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Star and Mainstay Moderate.
Diversification Opportunities for Vanguard Star and Mainstay Moderate
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between VANGUARD and Mainstay is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Star Fund and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Vanguard Star 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 Vanguard Star Fund are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Vanguard Star i.e., Vanguard Star and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Vanguard Star and Mainstay Moderate
If you would invest 2,761 in Vanguard Star Fund on September 3, 2024 and sell it today you would earn a total of 226.00 from holding Vanguard Star Fund or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Vanguard Star Fund vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Vanguard Star |
| Mainstay Moderate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vanguard Star and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Star and Mainstay Moderate
The main advantage of trading using opposite Vanguard Star and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Star position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Vanguard Star vs. Vanguard Windsor Ii | Vanguard Star vs. Vanguard Health Care | Vanguard Star vs. SCOR PK | Vanguard Star vs. HUMANA INC |
| Mainstay Moderate vs. Multimanager Lifestyle Aggressive | Mainstay Moderate vs. Nuveen High Income | Mainstay Moderate vs. Vanguard Star Fund | Mainstay Moderate vs. Calvert High Yield |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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