Correlation Between Vanguard Total and Mainstay Funds

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

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

Diversification Opportunities for Vanguard Total and Mainstay Funds

0.0

Correlation Coefficient

Vanguard Total  Mainstay Funds

Pay attention - limited upside

The 3 months correlation between VANGUARD and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International and The Mainstay Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Funds and Vanguard 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 Vanguard Total International are associated (or correlated) with Mainstay Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Funds has no effect on the direction of Vanguard Total i.e., Vanguard Total and Mainstay Funds go up and down completely randomly.

Pair Corralation between Vanguard Total and Mainstay Funds

If you would invest  1,902  in Vanguard Total International on December 23, 2024 and sell it today you would earn a total of  135.00  from holding Vanguard Total International or generate 7.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vanguard Total International  vs.  The Mainstay Funds

Vanguard Total Inter

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Total International are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Vanguard Total may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Mainstay Funds

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Vanguard Total and Mainstay Funds

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

The idea behind Vanguard Total International and The Mainstay Funds 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..