Correlation Between Mainstay Common and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Common 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 Mainstay Common and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Mon Stock and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Mainstay Common 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 Mainstay Common with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Common and Mainstay Mackay.
Diversification Opportunities for Mainstay Common and Mainstay Mackay
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mon Stock 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 Mainstay Common 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 Mainstay Mon Stock 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 Mainstay Common i.e., Mainstay Common and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Common and Mainstay Mackay
Assuming the 90 days horizon Mainstay Mon Stock is expected to generate 4.48 times more return on investment than Mainstay Mackay. However, Mainstay Common is 4.48 times more volatile than Mainstay Mackay Strategic. It trades about 0.07 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.08 per unit of risk. If you would invest 3,121 in Mainstay Mon Stock on November 2, 2024 and sell it today you would earn a total of 901.00 from holding Mainstay Mon Stock or generate 28.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mon Stock vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Mainstay Mon Stock |
| Mainstay Mackay Strategic |
Mainstay Common and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Common and Mainstay Mackay
The main advantage of trading using opposite Mainstay Common and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Common 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.| Mainstay Common vs. Tfa Alphagen Growth | Mainstay Common vs. Rational Strategic Allocation | Mainstay Common vs. Transamerica Asset Allocation | Mainstay Common vs. T Rowe Price |
| Mainstay Mackay vs. Salient Mlp Energy | Mainstay Mackay vs. Thrivent Natural Resources | Mainstay Mackay vs. Adams Natural Resources | Mainstay Mackay vs. Fidelity Advisor Energy |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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