Correlation Between Mainstay Fiera and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera 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 Mainstay Fiera and Mainstay Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Fiera Smid and Mainstay Income Builder, you can compare the effects of market volatilities on Mainstay Fiera 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 Mainstay Fiera with a short position of Mainstay Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay Income.
Diversification Opportunities for Mainstay Fiera and Mainstay Income
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and Mainstay is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid 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 Mainstay Fiera 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 Mainstay Fiera Smid 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 Mainstay Fiera i.e., Mainstay Fiera and Mainstay Income go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay Income
Assuming the 90 days horizon Mainstay Fiera Smid is expected to under-perform the Mainstay Income. In addition to that, Mainstay Fiera is 1.86 times more volatile than Mainstay Income Builder. It trades about -0.18 of its total potential returns per unit of risk. Mainstay Income Builder is currently generating about 0.01 per unit of volatility. If you would invest 2,121 in Mainstay Income Builder on December 5, 2024 and sell it today you would earn a total of 3.00 from holding Mainstay Income Builder or generate 0.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 88.14% |
Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay Income Builder
Performance |
Timeline |
Mainstay Fiera Smid |
Mainstay Income Builder |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Mainstay Fiera and Mainstay Income Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Fiera and Mainstay Income
The main advantage of trading using opposite Mainstay Fiera and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera 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.Mainstay Fiera vs. Mainstay Sp 500 | Mainstay Fiera vs. Mainstay Balanced Fund | Mainstay Fiera vs. Mainstay Balanced Fund | Mainstay Fiera vs. Mainstay Tax Advantaged |
Mainstay Income vs. Mainstay Sp 500 | Mainstay Income vs. Mainstay Balanced Fund | Mainstay Income vs. Mainstay Balanced Fund | Mainstay Income vs. Mainstay Tax Advantaged |
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 Stocks Directory module to find actively traded stocks across global markets.
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