Correlation Between Mainstay and Baron Discovery
Can any of the company-specific risk be diversified away by investing in both Mainstay and Baron Discovery 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 and Baron Discovery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Sp 500 and Baron Discovery Fund, you can compare the effects of market volatilities on Mainstay and Baron Discovery 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 with a short position of Baron Discovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay and Baron Discovery.
Diversification Opportunities for Mainstay and Baron Discovery
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Baron is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Sp 500 and Baron Discovery Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Discovery and Mainstay 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 Sp 500 are associated (or correlated) with Baron Discovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Discovery has no effect on the direction of Mainstay i.e., Mainstay and Baron Discovery go up and down completely randomly.
Pair Corralation between Mainstay and Baron Discovery
Assuming the 90 days horizon Mainstay Sp 500 is expected to generate 0.69 times more return on investment than Baron Discovery. However, Mainstay Sp 500 is 1.45 times less risky than Baron Discovery. It trades about 0.07 of its potential returns per unit of risk. Baron Discovery Fund is currently generating about 0.05 per unit of risk. If you would invest 7,025 in Mainstay Sp 500 on September 12, 2025 and sell it today you would earn a total of 223.00 from holding Mainstay Sp 500 or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Sp 500 vs. Baron Discovery Fund
Performance |
| Timeline |
| Mainstay Sp 500 |
| Baron Discovery |
Mainstay and Baron Discovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay and Baron Discovery
The main advantage of trading using opposite Mainstay and Baron Discovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay position performs unexpectedly, Baron Discovery 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 Baron Discovery will offset losses from the drop in Baron Discovery's long position.| Mainstay vs. Nationwide Sp 500 | Mainstay vs. Fam Value Fund | Mainstay vs. Lazard International Strategic | Mainstay vs. Lazard International Strategic |
| Baron Discovery vs. Baron Discovery Fund | Baron Discovery vs. Value Line Mid | Baron Discovery vs. Siit Dynamic Asset | Baron Discovery vs. Baron Opportunity Fund |
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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