Correlation Between Mainstay Servative and Ab Global

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

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

Diversification Opportunities for Mainstay Servative and Ab Global

-0.42

Correlation Coefficient

Mainstay Servative  Ab Global

Very good diversification

The 3 months correlation between Mainstay and CBSYX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Servative Allocation and Ab Global Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Risk and Mainstay Servative 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 Servative Allocation are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Risk has no effect on the direction of Mainstay Servative i.e., Mainstay Servative and Ab Global go up and down completely randomly.

Pair Corralation between Mainstay Servative and Ab Global

If you would invest  1,560  in Ab Global Risk on April 30, 2025 and sell it today you would earn a total of  77.00  from holding Ab Global Risk or generate 4.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.61%
Values	Daily Returns

Mainstay Servative Allocation  vs.  Ab Global Risk

Mainstay Servative

Risk-Adjusted Performance

Very Weak

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

Ab Global Risk

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ab Global Risk are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ab 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 Servative and Ab Global

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

The idea behind Mainstay Servative Allocation and Ab Global Risk 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.