Correlation Between Mainstay Balanced and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Balanced and Mainstay Moderate 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 Balanced and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Balanced Fund and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Mainstay Balanced and Mainstay Moderate 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 Balanced with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Balanced and Mainstay Moderate.
Diversification Opportunities for Mainstay Balanced and Mainstay Moderate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Balanced Fund and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Mainstay Balanced 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 Balanced Fund are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Mainstay Balanced i.e., Mainstay Balanced and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Balanced and Mainstay Moderate
If you would invest 3,094 in Mainstay Balanced Fund on June 12, 2025 and sell it today you would earn a total of 111.00 from holding Mainstay Balanced Fund or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Mainstay Balanced Fund vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Mainstay Balanced |
| Mainstay Moderate |
Risk-Adjusted Performance
Good
Weak | Strong |
Mainstay Balanced and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Balanced and Mainstay Moderate
The main advantage of trading using opposite Mainstay Balanced and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Balanced position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay Balanced vs. Europac Gold Fund | Mainstay Balanced vs. Oppenheimer Gold Special | Mainstay Balanced vs. International Investors Gold | Mainstay Balanced vs. Goldman Sachs Clean |
| Mainstay Moderate vs. Sit Government Securities | Mainstay Moderate vs. Federated Government Income | Mainstay Moderate vs. Blackrock Government Bond | Mainstay Moderate vs. Franklin Adjustable Government |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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