Correlation Between Mainstay Fiera and Mainstay Large

Specify exactly 2 symbols:
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

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Mainstay and Mainstay is 0.76. 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 generate 0.36 times more return on investment than Mainstay Large. However, Mainstay Fiera Smid is 2.78 times less risky than Mainstay Large. It trades about 0.01 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.05 per unit of risk. If you would invest  1,625  in Mainstay Fiera Smid on December 5, 2024 and sell it today you would earn a total of  1.00  from holding Mainstay Fiera Smid or generate 0.06% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Mainstay Fiera Smid  vs.  Mainstay Large Cap

 Performance 
       Timeline  
Mainstay Fiera Smid 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Fiera Smid has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
Mainstay Large Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mainstay Large is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.
The idea behind Mainstay Fiera Smid and Mainstay Large Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Bonds Directory
Find actively traded corporate debentures issued by US companies
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments