Correlation Between Banking Portfolio and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Banking Portfolio 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 Banking Portfolio and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banking Portfolio Banking and Mainstay Mackay Short, you can compare the effects of market volatilities on Banking Portfolio 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 Banking Portfolio with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banking Portfolio and Mainstay Mackay.
Diversification Opportunities for Banking Portfolio and Mainstay Mackay
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banking and Mainstay is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Banking Portfolio Banking and Mainstay Mackay Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Short and Banking Portfolio 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 Banking Portfolio Banking 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 Short has no effect on the direction of Banking Portfolio i.e., Banking Portfolio and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Banking Portfolio and Mainstay Mackay
Assuming the 90 days horizon Banking Portfolio Banking is expected to under-perform the Mainstay Mackay. In addition to that, Banking Portfolio is 9.42 times more volatile than Mainstay Mackay Short. It trades about -0.2 of its total potential returns per unit of risk. Mainstay Mackay Short is currently generating about 0.14 per unit of volatility. If you would invest 926.00 in Mainstay Mackay Short on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Mainstay Mackay Short or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banking Portfolio Banking vs. Mainstay Mackay Short
Performance |
| Timeline |
| Banking Portfolio Banking |
| Mainstay Mackay Short |
Banking Portfolio and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banking Portfolio and Mainstay Mackay
The main advantage of trading using opposite Banking Portfolio and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banking Portfolio 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.| Banking Portfolio vs. Consumer Finance Portfolio | Banking Portfolio vs. Financial Services Portfolio | Banking Portfolio vs. Insurance Portfolio Insurance | Banking Portfolio vs. Brokerage And Investment |
| Mainstay Mackay vs. Tax Managed International Equity | Mainstay Mackay vs. Transamerica Funds | Mainstay Mackay vs. Guidemark E Fixed | Mainstay Mackay vs. Doubleline Emerging Markets |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |