Correlation Between Mainstay Winslow and Mainstay Cornerstone

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

By analyzing existing cross correlation between Mainstay Winslow Large and Mainstay Nerstone Growth, you can compare the effects of market volatilities on Mainstay Winslow and Mainstay Cornerstone 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 Winslow with a short position of Mainstay Cornerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Winslow and Mainstay Cornerstone.

Diversification Opportunities for Mainstay Winslow and Mainstay Cornerstone

0.98

Correlation Coefficient

Mainstay Winslow  Mainstay Cornerstone

Almost no diversification

The 3 months correlation between Mainstay and Mainstay is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Winslow Large and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth and Mainstay Winslow 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 Winslow Large are associated (or correlated) with Mainstay Cornerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of Mainstay Winslow i.e., Mainstay Winslow and Mainstay Cornerstone go up and down completely randomly.

Pair Corralation between Mainstay Winslow and Mainstay Cornerstone

Assuming the 90 days horizon Mainstay Winslow Large is expected to generate 1.05 times more return on investment than Mainstay Cornerstone. However, Mainstay Winslow is 1.05 times more volatile than Mainstay Nerstone Growth. It trades about 0.18 of its potential returns per unit of risk. Mainstay Nerstone Growth is currently generating about 0.15 per unit of risk. If you would invest  988.00  in Mainstay Winslow Large on September 3, 2024 and sell it today you would earn a total of  125.00  from holding Mainstay Winslow Large or generate 12.65% return on investment over 90 days.

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

Mainstay Winslow Large  vs.  Mainstay Nerstone Growth

Mainstay Winslow Large

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Winslow Large are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Mainstay Winslow may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Mainstay Nerstone Growth

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Nerstone Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Cornerstone may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Mainstay Winslow and Mainstay Cornerstone

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

The idea behind Mainstay Winslow Large and Mainstay Nerstone Growth 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.