Correlation Between Mainstay Growth and Mainstay

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

By analyzing existing cross correlation between Mainstay Growth Etf and Mainstay Sp 500, you can compare the effects of market volatilities on Mainstay Growth and Mainstay 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 Growth with a short position of Mainstay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Growth and Mainstay.

Diversification Opportunities for Mainstay Growth and Mainstay

1.0

Correlation Coefficient

Mainstay Growth  Mainstay

No risk reduction

The 3 months correlation between Mainstay and Mainstay is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Growth Etf and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 and Mainstay Growth 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 Growth Etf are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Growth i.e., Mainstay Growth and Mainstay go up and down completely randomly.

Pair Corralation between Mainstay Growth and Mainstay

Assuming the 90 days horizon Mainstay Growth is expected to generate 1.5 times less return on investment than Mainstay. But when comparing it to its historical volatility, Mainstay Growth Etf is 1.26 times less risky than Mainstay. It trades about 0.23 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  6,024  in Mainstay Sp 500 on May 4, 2025 and sell it today you would earn a total of  772.00  from holding Mainstay Sp 500 or generate 12.82% return on investment over 90 days.

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

Mainstay Growth Etf  vs.  Mainstay Sp 500

Mainstay Growth Etf

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Growth Etf are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Mainstay Sp 500

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Sp 500 are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Mainstay may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Mainstay Growth and Mainstay

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

The idea behind Mainstay Growth Etf and Mainstay Sp 500 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.