Correlation Between The Hartford and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 The Hartford and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Emerging and Mainstay Mackay Short, you can compare the effects of market volatilities on The Hartford 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 The Hartford with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Mainstay Mackay.
Diversification Opportunities for The Hartford and Mainstay Mackay
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between The and Mainstay is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging 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 The Hartford 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 The Hartford Emerging 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 The Hartford i.e., The Hartford and Mainstay Mackay go up and down completely randomly.
Pair Corralation between The Hartford and Mainstay Mackay
Assuming the 90 days horizon The Hartford is expected to generate 1.05 times less return on investment than Mainstay Mackay. In addition to that, The Hartford is 3.88 times more volatile than Mainstay Mackay Short. It trades about 0.05 of its total potential returns per unit of risk. Mainstay Mackay Short is currently generating about 0.19 per unit of volatility. If you would invest 880.00 in Mainstay Mackay Short on September 1, 2024 and sell it today you would earn a total of 49.00 from holding Mainstay Mackay Short or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Emerging vs. Mainstay Mackay Short
Performance |
| Timeline |
| Hartford Emerging |
| Mainstay Mackay Short |
The Hartford and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Mainstay Mackay
The main advantage of trading using opposite The Hartford and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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.| The Hartford vs. Energy Basic Materials | The Hartford vs. Oil Gas Ultrasector | The Hartford vs. World Energy Fund | The Hartford vs. Tortoise Energy Independence |
| Mainstay Mackay vs. Mainstay High Yield | Mainstay Mackay vs. Mainstay Tax Free | Mainstay Mackay vs. Mainstay Income Builder | Mainstay Mackay vs. Mainstay Large Cap |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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