Correlation Between Mainstay Mackay and Virtus Real
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Virtus Real 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 Virtus Real 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 Virtus Real Estate, you can compare the effects of market volatilities on Mainstay Mackay and Virtus Real 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 Virtus Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Virtus Real.
Diversification Opportunities for Mainstay Mackay and Virtus Real
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Virtus is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay High and Virtus Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Real Estate 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 Virtus Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Real Estate has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Virtus Real go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Virtus Real
Assuming the 90 days horizon Mainstay Mackay High is expected to generate 0.22 times more return on investment than Virtus Real. However, Mainstay Mackay High is 4.52 times less risky than Virtus Real. It trades about 0.44 of its potential returns per unit of risk. Virtus Real Estate is currently generating about -0.08 per unit of risk. If you would invest 1,194 in Mainstay Mackay High on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Mainstay Mackay High or generate 1.68% 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. Virtus Real Estate
Performance |
| Timeline |
| Mainstay Mackay High |
| Virtus Real Estate |
Mainstay Mackay and Virtus Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Virtus Real
The main advantage of trading using opposite Mainstay Mackay and Virtus Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Virtus Real 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 Virtus Real will offset losses from the drop in Virtus Real's long position.| Mainstay Mackay vs. Lgm Risk Managed | Mainstay Mackay vs. Western Asset High | Mainstay Mackay vs. T Rowe Price | Mainstay Mackay vs. Metropolitan West High |
| Virtus Real vs. Forum Real Estate | Virtus Real vs. Goldman Sachs Real | Virtus Real vs. Nuveen Real Estate | Virtus Real vs. Amg Managers Centersquare |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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