Correlation Between Mainstay Conservative and Credit Suisse

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

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

Diversification Opportunities for Mainstay Conservative and Credit Suisse

-0.63

Correlation Coefficient

Mainstay Conservative  Credit Suisse

Excellent diversification

The 3 months correlation between Mainstay and Credit is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Conservative Allocati and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia and Mainstay Conservative 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 Conservative Allocation are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Mainstay Conservative i.e., Mainstay Conservative and Credit Suisse go up and down completely randomly.

Pair Corralation between Mainstay Conservative and Credit Suisse

Assuming the 90 days horizon Mainstay Conservative Allocation is expected to generate 1.3 times more return on investment than Credit Suisse. However, Mainstay Conservative is 1.3 times more volatile than Credit Suisse Multialternative. It trades about 0.04 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about -0.04 per unit of risk. If you would invest  1,179  in Mainstay Conservative Allocation on May 2, 2025 and sell it today you would earn a total of  32.00  from holding Mainstay Conservative Allocation or generate 2.71% return on investment over 90 days.

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

Mainstay Conservative Allocati  vs.  Credit Suisse Multialternative

Mainstay Conservative

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Conservative Allocation are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mainstay Conservative is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credit Suisse Multia

Risk-Adjusted Performance

Very Weak

Over the last 90 days Credit Suisse Multialternative has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Credit Suisse 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 Conservative and Credit Suisse

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

The idea behind Mainstay Conservative Allocation and Credit Suisse Multialternative 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.