Correlation Between Massmutual Premier and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier 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 Massmutual Premier and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Diversified and Mainstay Mackay Tax, you can compare the effects of market volatilities on Massmutual Premier 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 Massmutual Premier with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Mainstay Mackay.
Diversification Opportunities for Massmutual Premier and Mainstay Mackay
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Massmutual and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Mainstay Mackay Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Tax and Massmutual Premier 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 Massmutual Premier Diversified 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 Tax has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Massmutual Premier and Mainstay Mackay
Assuming the 90 days horizon Massmutual Premier Diversified is expected to under-perform the Mainstay Mackay. In addition to that, Massmutual Premier is 1.13 times more volatile than Mainstay Mackay Tax. It trades about -0.03 of its total potential returns per unit of risk. Mainstay Mackay Tax is currently generating about 0.03 per unit of volatility. If you would invest 944.00 in Mainstay Mackay Tax on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Mainstay Mackay Tax or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Mainstay Mackay Tax
Performance |
| Timeline |
| Massmutual Premier |
| Mainstay Mackay Tax |
Massmutual Premier and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Mainstay Mackay
The main advantage of trading using opposite Massmutual Premier and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier 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.| Massmutual Premier vs. Pace International Emerging | Massmutual Premier vs. Siit Emerging Markets | Massmutual Premier vs. Mid Cap 15x Strategy | Massmutual Premier vs. Shelton Emerging Markets |
| Mainstay Mackay vs. Vy Columbia Small | Mainstay Mackay vs. Small Pany Growth | Mainstay Mackay vs. Lebenthal Lisanti Small | Mainstay Mackay vs. Sp Smallcap 600 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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