Correlation Between Lgm Risk and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Lgm Risk 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 Lgm Risk and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lgm Risk Managed and Mainstay Mackay High, you can compare the effects of market volatilities on Lgm Risk 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 Lgm Risk with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lgm Risk and Mainstay Mackay.
Diversification Opportunities for Lgm Risk and Mainstay Mackay
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lgm and Mainstay is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lgm Risk Managed 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 Lgm Risk 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 Lgm Risk Managed 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 Lgm Risk i.e., Lgm Risk and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Lgm Risk and Mainstay Mackay
Assuming the 90 days horizon Lgm Risk is expected to generate 2.04 times less return on investment than Mainstay Mackay. In addition to that, Lgm Risk is 1.18 times more volatile than Mainstay Mackay High. It trades about 0.16 of its total potential returns per unit of risk. Mainstay Mackay High is currently generating about 0.37 per unit of volatility. If you would invest 1,193 in Mainstay Mackay High on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Mainstay Mackay High or generate 1.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lgm Risk Managed vs. Mainstay Mackay High
Performance |
| Timeline |
| Lgm Risk Managed |
| Mainstay Mackay High |
Lgm Risk and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lgm Risk and Mainstay Mackay
The main advantage of trading using opposite Lgm Risk and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lgm Risk 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.| Lgm Risk vs. The Gabelli Money | Lgm Risk vs. Matson Money Equity | Lgm Risk vs. Schwab Treasury Money | Lgm Risk vs. Putnam Money Market |
| Mainstay Mackay vs. Mainstay Tax Free | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay vs. Mainstay Large Cap | 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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