Correlation Between Absolute Convertible and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Absolute Convertible 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 Absolute Convertible and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absolute Convertible Arbitrage and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Absolute Convertible 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 Absolute Convertible with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolute Convertible and Mainstay Mackay.
Diversification Opportunities for Absolute Convertible and Mainstay Mackay
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Absolute and Mainstay is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Absolute Convertible Arbitrage and Mainstay Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic and Absolute Convertible 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 Absolute Convertible Arbitrage 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 Strategic has no effect on the direction of Absolute Convertible i.e., Absolute Convertible and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Absolute Convertible and Mainstay Mackay
Assuming the 90 days horizon Absolute Convertible is expected to generate 1.92 times less return on investment than Mainstay Mackay. But when comparing it to its historical volatility, Absolute Convertible Arbitrage is 1.67 times less risky than Mainstay Mackay. It trades about 0.38 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 949.00 in Mainstay Mackay Strategic on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Mainstay Mackay Strategic or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Absolute Convertible Arbitrage vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Absolute Convertible |
| Mainstay Mackay Strategic |
Absolute Convertible and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absolute Convertible and Mainstay Mackay
The main advantage of trading using opposite Absolute Convertible and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absolute Convertible 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.| Absolute Convertible vs. Vy Goldman Sachs | Absolute Convertible vs. Invesco Gold Special | Absolute Convertible vs. Short Precious Metals | Absolute Convertible vs. Franklin Gold Precious |
| Mainstay Mackay vs. Virtus Convertible | Mainstay Mackay vs. Fidelity Sai Convertible | Mainstay Mackay vs. Absolute Convertible Arbitrage | Mainstay Mackay vs. Rationalpier 88 Convertible |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |