Correlation Between Mainstay Wmc and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Wmc and Mainstay Large 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 Wmc and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Wmc Value and Mainstay Large Cap, you can compare the effects of market volatilities on Mainstay Wmc and Mainstay Large 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 Wmc with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Wmc and Mainstay Large.
Diversification Opportunities for Mainstay Wmc and Mainstay Large
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Wmc Value and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Mainstay Wmc 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 Wmc Value are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Mainstay Wmc i.e., Mainstay Wmc and Mainstay Large go up and down completely randomly.
Pair Corralation between Mainstay Wmc and Mainstay Large
Assuming the 90 days horizon Mainstay Wmc Value is expected to generate 0.73 times more return on investment than Mainstay Large. However, Mainstay Wmc Value is 1.38 times less risky than Mainstay Large. It trades about 0.16 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.09 per unit of risk. If you would invest 3,274 in Mainstay Wmc Value on June 7, 2025 and sell it today you would earn a total of 199.00 from holding Mainstay Wmc Value or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Wmc Value vs. Mainstay Large Cap
Performance |
| Timeline |
| Mainstay Wmc Value |
| Mainstay Large Cap |
Mainstay Wmc and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Wmc and Mainstay Large
The main advantage of trading using opposite Mainstay Wmc and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Wmc position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Mainstay Wmc vs. Smallcap Fund Fka | Mainstay Wmc vs. Mutual Of America | Mainstay Wmc vs. Goldman Sachs Small | Mainstay Wmc vs. Lebenthal Lisanti Small |
| Mainstay Large vs. Mainstay High Yield | Mainstay Large vs. Mainstay Sp 500 | Mainstay Large vs. Mainstay Vertible Fund | Mainstay Large vs. Mainstay Map Equity |
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.
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