Correlation Between Mainstay Fiera and Mainstay

Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera 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 Fiera and Mainstay 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 Sp 500, you can compare the effects of market volatilities on Mainstay Fiera 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 Fiera with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay.

Diversification Opportunities for Mainstay Fiera and Mainstay

0.81

Correlation Coefficient

Mainstay Fiera  Mainstay

Very poor diversification

The 3 months correlation between Mainstay and Mainstay is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid 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 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. 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 Fiera i.e., Mainstay Fiera and Mainstay go up and down completely randomly.

Pair Corralation between Mainstay Fiera and Mainstay

Assuming the 90 days horizon Mainstay Fiera is expected to generate 1.61 times less return on investment than Mainstay. In addition to that, Mainstay Fiera is 1.41 times more volatile than Mainstay Sp 500. It trades about 0.08 of its total potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.19 per unit of volatility. If you would invest  6,311  in Mainstay Sp 500 on May 15, 2025 and sell it today you would earn a total of  498.00  from holding Mainstay Sp 500 or generate 7.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

Mainstay Fiera Smid  vs.  Mainstay Sp 500

Mainstay Fiera Smid

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Fiera Smid are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mainstay Fiera is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mainstay Sp 500

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Sp 500 are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Mainstay Fiera and Mainstay

The main advantage of trading using opposite Mainstay Fiera and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera 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 Fiera Smid 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 Stocks Directory module to find actively traded stocks across global markets.