Correlation Between Mainstay Large and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Large 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 Large 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 Large Cap and Mainstay Mackay Infrastructure, you can compare the effects of market volatilities on Mainstay Large 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 Large with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Mackay.
Diversification Opportunities for Mainstay Large and Mainstay Mackay
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Mainstay is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Mainstay Mackay Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Infr and Mainstay Large 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 Large Cap 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 Infr has no effect on the direction of Mainstay Large i.e., Mainstay Large and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay Mackay
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 4.32 times more return on investment than Mainstay Mackay. However, Mainstay Large is 4.32 times more volatile than Mainstay Mackay Infrastructure. It trades about 0.14 of its potential returns per unit of risk. Mainstay Mackay Infrastructure is currently generating about -0.06 per unit of risk. If you would invest 1,269 in Mainstay Large Cap on August 26, 2024 and sell it today you would earn a total of 46.00 from holding Mainstay Large Cap or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay Mackay Infrastructure
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay Mackay Infr |
Mainstay Large and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay Mackay
The main advantage of trading using opposite Mainstay Large and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large 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 Large vs. Mainstay Tax Free | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Large Cap |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance |