Correlation Between Mfs Diversified and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Mfs Diversified and Mainstay 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 Mfs Diversified and Mainstay Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Diversified Income and Mainstay Government Fund, you can compare the effects of market volatilities on Mfs Diversified and Mainstay 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 Mfs Diversified with a short position of Mainstay Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Diversified and Mainstay Government.
Diversification Opportunities for Mfs Diversified and Mainstay Government
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mfs and Mainstay is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Diversified Income and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government and Mfs Diversified 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 Mfs Diversified Income are associated (or correlated) with Mainstay Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Mfs Diversified i.e., Mfs Diversified and Mainstay Government go up and down completely randomly.
Pair Corralation between Mfs Diversified and Mainstay Government
Assuming the 90 days horizon Mfs Diversified Income is expected to generate 1.02 times more return on investment than Mainstay Government. However, Mfs Diversified is 1.02 times more volatile than Mainstay Government Fund. It trades about 0.24 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.22 per unit of risk. If you would invest 1,225 in Mfs Diversified Income on May 29, 2025 and sell it today you would earn a total of 19.00 from holding Mfs Diversified Income or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mfs Diversified Income vs. Mainstay Government Fund
Performance |
| Timeline |
| Mfs Diversified Income |
| Mainstay Government |
Mfs Diversified and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Diversified and Mainstay Government
The main advantage of trading using opposite Mfs Diversified and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Diversified position performs unexpectedly, Mainstay 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 Mainstay Government will offset losses from the drop in Mainstay Government's long position.| Mfs Diversified vs. Mfs Prudent Investor | Mfs Diversified vs. Mfs Prudent Investor | Mfs Diversified vs. Mfs Prudent Investor | Mfs Diversified vs. Mfs Prudent Investor |
| Mainstay Government vs. Janus High Yield Fund | Mainstay Government vs. Transamerica High Yield | Mainstay Government vs. Fidelity Capital Income | Mainstay Government vs. Blackrock High Yield |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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