Correlation Between Bio Rad and Mainstay Servative

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

By analyzing existing cross correlation between Bio Rad Laboratories and Mainstay Servative Allocation, you can compare the effects of market volatilities on Bio Rad and Mainstay Servative 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 Bio Rad with a short position of Mainstay Servative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Mainstay Servative.

Diversification Opportunities for Bio Rad and Mainstay Servative

0.51

Correlation Coefficient

Bio Rad  Mainstay Servative

Very weak diversification

The 3 months correlation between Bio and Mainstay is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Mainstay Servative Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Servative and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Mainstay Servative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Servative has no effect on the direction of Bio Rad i.e., Bio Rad and Mainstay Servative go up and down completely randomly.

Pair Corralation between Bio Rad and Mainstay Servative

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 10.11 times more return on investment than Mainstay Servative. However, Bio Rad is 10.11 times more volatile than Mainstay Servative Allocation. It trades about 0.1 of its potential returns per unit of risk. Mainstay Servative Allocation is currently generating about 0.19 per unit of risk. If you would invest  24,019  in Bio Rad Laboratories on May 4, 2025 and sell it today you would earn a total of  4,441  from holding Bio Rad Laboratories or generate 18.49% return on investment over 90 days.

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

Bio Rad Laboratories  vs.  Mainstay Servative Allocation

Bio Rad Laboratories

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad displayed solid returns over the last few months and may actually be approaching a breakup point.

Mainstay Servative

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Servative Allocation are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Mainstay Servative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bio Rad and Mainstay Servative

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

The idea behind Bio Rad Laboratories and Mainstay Servative Allocation 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.