Correlation Between Mainstay Fiera and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay Large.
Diversification Opportunities for Mainstay Fiera and Mainstay Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay Large go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay Large
Assuming the 90 days horizon Mainstay Fiera Smid is expected to under-perform the Mainstay Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay Fiera Smid is 1.1 times less risky than Mainstay Large. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Mainstay Large Cap is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 433.00 in Mainstay Large Cap on December 29, 2024 and sell it today you would lose (40.00) from holding Mainstay Large Cap or give up 9.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.39% |
Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay Large Cap
Performance |
Timeline |
Mainstay Fiera Smid |
Mainstay Large Cap |
Mainstay Fiera and Mainstay Large Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Fiera and Mainstay Large
The main advantage of trading using opposite Mainstay Fiera and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.Mainstay Fiera vs. Gabelli Convertible And | Mainstay Fiera vs. Rationalpier 88 Convertible | Mainstay Fiera vs. Absolute Convertible Arbitrage | Mainstay Fiera vs. Columbia Convertible Securities |
Mainstay Large vs. Prudential Financial Services | Mainstay Large vs. Blackrock Financial Institutions | Mainstay Large vs. Mesirow Financial Small | Mainstay Large vs. Goldman Sachs Financial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |