Correlation Between Mainstay Mackay and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Mainstay Moderate 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 Mackay and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Mackay High and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Mainstay Mackay and Mainstay Moderate 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 Mackay with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Mainstay Moderate.
Diversification Opportunities for Mainstay Mackay and Mainstay Moderate
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Mainstay is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay High and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate and Mainstay Mackay 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 Mackay High are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Mainstay Moderate
Assuming the 90 days horizon Mainstay Mackay is expected to generate 1.71 times less return on investment than Mainstay Moderate. But when comparing it to its historical volatility, Mainstay Mackay High is 1.55 times less risky than Mainstay Moderate. It trades about 0.08 of its potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,190 in Mainstay Moderate Allocation on August 30, 2024 and sell it today you would earn a total of 298.00 from holding Mainstay Moderate Allocation or generate 25.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mackay High vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Mainstay Mackay High |
| Mainstay Moderate |
Mainstay Mackay and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Mainstay Moderate
The main advantage of trading using opposite Mainstay Mackay and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Mainstay Moderate 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 Moderate will offset losses from the drop in Mainstay Moderate's long position.| Mainstay Mackay vs. T Rowe Price | Mainstay Mackay vs. Dodge Cox Stock | Mainstay Mackay vs. T Rowe Price | Mainstay Mackay vs. Vanguard Equity Income |
| Mainstay Moderate vs. Alphacentric Lifesci Healthcare | Mainstay Moderate vs. Fidelity Advisor Health | Mainstay Moderate vs. Alger Health Sciences | Mainstay Moderate vs. Deutsche Health And |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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