Correlation Between Chase Growth and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Mainstay Mackay High, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Mainstay Mackay.
Diversification Opportunities for Chase Growth and Mainstay Mackay
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chase and Mainstay is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Mainstay Mackay High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay High and Chase Growth 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 Chase Growth Fund 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 High has no effect on the direction of Chase Growth i.e., Chase Growth and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Chase Growth and Mainstay Mackay
Assuming the 90 days horizon Chase Growth Fund is expected to generate 2.5 times more return on investment than Mainstay Mackay. However, Chase Growth is 2.5 times more volatile than Mainstay Mackay High. It trades about 0.25 of its potential returns per unit of risk. Mainstay Mackay High is currently generating about 0.2 per unit of risk. If you would invest 1,679 in Chase Growth Fund on August 30, 2024 and sell it today you would earn a total of 96.00 from holding Chase Growth Fund or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Mainstay Mackay High
Performance |
| Timeline |
| Chase Growth |
| Mainstay Mackay High |
Chase Growth and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Mainstay Mackay
The main advantage of trading using opposite Chase Growth and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
| Mainstay Mackay vs. Chase Growth Fund | Mainstay Mackay vs. Ancorathelen Small Mid Cap | Mainstay Mackay vs. T Rowe Price | Mainstay Mackay vs. Small Pany Growth |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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