Correlation Between Mainstay New and Mainstay Servative

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

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

Diversification Opportunities for Mainstay New and Mainstay Servative

-0.53

Correlation Coefficient

Mainstay New  Mainstay Servative

Excellent diversification

The 3 months correlation between Mainstay and Mainstay is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay New York and Mainstay Servative Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Servative and Mainstay New 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 New York 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 Mainstay New i.e., Mainstay New and Mainstay Servative go up and down completely randomly.

Pair Corralation between Mainstay New and Mainstay Servative

Assuming the 90 days horizon Mainstay New York is expected to under-perform the Mainstay Servative. But the mutual fund apears to be less risky and, when comparing its historical volatility, Mainstay New York is 1.76 times less risky than Mainstay Servative. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Mainstay Servative Allocation is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,179  in Mainstay Servative Allocation on May 4, 2025 and sell it today you would earn a total of  46.00  from holding Mainstay Servative Allocation or generate 3.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Mainstay New York  vs.  Mainstay Servative Allocation

Mainstay New York

Risk-Adjusted Performance

Very Weak

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

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 Mainstay New and Mainstay Servative

The main advantage of trading using opposite Mainstay New and Mainstay Servative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay New 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 Mainstay New York 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.