Correlation Between Mainstay Fiera and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Mainstay Mackay 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 Fiera and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Fiera Smid and Mainstay Mackay Tax, you can compare the effects of market volatilities on Mainstay Fiera and Mainstay Mackay 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 Fiera with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Mainstay Mackay.
Diversification Opportunities for Mainstay Fiera and Mainstay Mackay
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Mainstay Mackay Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Tax and Mainstay Fiera 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 Fiera Smid are associated (or correlated) with Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Tax has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Mainstay Mackay
Assuming the 90 days horizon Mainstay Fiera Smid is expected to generate 4.15 times more return on investment than Mainstay Mackay. However, Mainstay Fiera is 4.15 times more volatile than Mainstay Mackay Tax. It trades about 0.18 of its potential returns per unit of risk. Mainstay Mackay Tax is currently generating about 0.04 per unit of risk. If you would invest 1,697 in Mainstay Fiera Smid on August 29, 2024 and sell it today you would earn a total of 209.00 from holding Mainstay Fiera Smid or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Mainstay Mackay Tax
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Mainstay Mackay Tax |
Mainstay Fiera and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Mainstay Mackay
The main advantage of trading using opposite Mainstay Fiera and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Mainstay Mackay 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 Mackay will offset losses from the drop in Mainstay Mackay's long position.| Mainstay Fiera vs. Gamco Global Telecommunications | Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. Transamerica Intermediate Muni | Mainstay Fiera vs. Intermediate Term Tax Free Bond |
| Mainstay Mackay vs. Prudential Jennison Financial | Mainstay Mackay vs. Artisan High Income | Mainstay Mackay vs. Blrc Sgy Mnp | Mainstay Mackay vs. Mirova Global Green |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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