Correlation Between Mainstay Moderate and International Government

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

By analyzing existing cross correlation between Mainstay Moderate Etf and International Government Bond, you can compare the effects of market volatilities on Mainstay Moderate and International Government 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 Moderate with a short position of International Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and International Government.

Diversification Opportunities for Mainstay Moderate and International Government

-0.35

Correlation Coefficient

Mainstay Moderate  International Government

Very good diversification

The 3 months correlation between MainStay and International is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Etf and International Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Government and Mainstay Moderate 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 Moderate Etf are associated (or correlated) with International Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Government has no effect on the direction of Mainstay Moderate i.e., Mainstay Moderate and International Government go up and down completely randomly.

Pair Corralation between Mainstay Moderate and International Government

Assuming the 90 days horizon Mainstay Moderate Etf is expected to generate 1.62 times more return on investment than International Government. However, Mainstay Moderate is 1.62 times more volatile than International Government Bond. It trades about 0.19 of its potential returns per unit of risk. International Government Bond is currently generating about 0.07 per unit of risk. If you would invest  1,333  in Mainstay Moderate Etf on August 6, 2025 and sell it today you would earn a total of  72.00  from holding Mainstay Moderate Etf or generate 5.4% return on investment over 90 days.

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

Mainstay Moderate Etf  vs.  International Government Bond

Mainstay Moderate Etf

Risk-Adjusted Performance

Solid

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

International Government

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in International Government Bond are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, International Government 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 Moderate and International Government

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

The idea behind Mainstay Moderate Etf and International Government Bond 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.