Correlation Between Mainstay New and Mainstay

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Can any of the company-specific risk be diversified away by investing in both Mainstay New and Mainstay 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 New and Mainstay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay New York and Mainstay Sp 500, you can compare the effects of market volatilities on Mainstay New and Mainstay 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 New with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay New and Mainstay.

Diversification Opportunities for Mainstay New and Mainstay

MainstayMainstayDiversified AwayMainstayMainstayDiversified Away100%
0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Mainstay and Mainstay is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay New York and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 and Mainstay New 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 New York are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay New i.e., Mainstay New and Mainstay go up and down completely randomly.

Pair Corralation between Mainstay New and Mainstay

Assuming the 90 days horizon Mainstay New York is expected to under-perform the Mainstay. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay New York is 3.34 times less risky than Mainstay. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Mainstay Sp 500 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  6,667  in Mainstay Sp 500 on November 18, 2024 and sell it today you would lose (1.00) from holding Mainstay Sp 500 or give up 0.01% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Mainstay New York  vs.  Mainstay Sp 500

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -6-4-20
JavaScript chart by amCharts 3.21.15MNOIX MSPIX
       Timeline  
Mainstay New York 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay New York has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Mainstay New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.459.59.559.69.659.79.75
Mainstay Sp 500 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Sp 500 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Mainstay is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6465666768

Mainstay New and Mainstay Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.84-0.59-0.34-0.098-0.01090.07990.290.540.791.04 12345
JavaScript chart by amCharts 3.21.15MNOIX MSPIX
       Returns  

Pair Trading with Mainstay New and Mainstay

The main advantage of trading using opposite Mainstay New and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay New position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.
The idea behind Mainstay New York and Mainstay Sp 500 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.
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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