Correlation Between Mainstay Total and Ms Global

Can any of the company-specific risk be diversified away by investing in both Mainstay Total and Ms Global 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 Total and Ms Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mainstay Total Return and Ms Global Fixed, you can compare the effects of market volatilities on Mainstay Total and Ms Global 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 Total with a short position of Ms Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Total and Ms Global.

Diversification Opportunities for Mainstay Total and Ms Global

0.65

Correlation Coefficient

Mainstay Total  Ms Global

Poor diversification

The 3 months correlation between Mainstay and MFIRX is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Total Return and Ms Global Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ms Global Fixed and Mainstay Total 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 Total Return are associated (or correlated) with Ms Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ms Global Fixed has no effect on the direction of Mainstay Total i.e., Mainstay Total and Ms Global go up and down completely randomly.

Pair Corralation between Mainstay Total and Ms Global

Assuming the 90 days horizon Mainstay Total Return is expected to under-perform the Ms Global. In addition to that, Mainstay Total is 2.02 times more volatile than Ms Global Fixed. It trades about -0.32 of its total potential returns per unit of risk. Ms Global Fixed is currently generating about -0.25 per unit of volatility. If you would invest  527.00  in Ms Global Fixed on October 4, 2024 and sell it today you would lose (4.00) from holding Ms Global Fixed or give up 0.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Mainstay Total Return  vs.  Ms Global Fixed

Mainstay Total Return

Risk-Adjusted Performance

0 of 100

Very Weak

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

Ms Global Fixed

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Mainstay Total and Ms Global

The main advantage of trading using opposite Mainstay Total and Ms Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Total position performs unexpectedly, Ms Global 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 Ms Global will offset losses from the drop in Ms Global's long position.

The idea behind Mainstay Total Return and Ms Global Fixed 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.