Correlation Between Mainstay Mackay and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Mainstay Conservative 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 Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Mackay New and Mainstay Conservative Allocation, you can compare the effects of market volatilities on Mainstay Mackay and Mainstay Conservative 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 Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Mainstay Conservative.
Diversification Opportunities for Mainstay Mackay and Mainstay Conservative
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay New and Mainstay Conservative Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative 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 New are associated (or correlated) with Mainstay Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Mainstay Conservative
Assuming the 90 days horizon Mainstay Mackay is expected to generate 1.9 times less return on investment than Mainstay Conservative. But when comparing it to its historical volatility, Mainstay Mackay New is 1.91 times less risky than Mainstay Conservative. It trades about 0.06 of its potential returns per unit of risk. Mainstay Conservative Allocation is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,192 in Mainstay Conservative Allocation on October 24, 2024 and sell it today you would earn a total of 7.00 from holding Mainstay Conservative Allocation or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mackay New vs. Mainstay Conservative Allocati
Performance |
| Timeline |
| Mainstay Mackay New |
| Mainstay Conservative |
Mainstay Mackay and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Mainstay Conservative
The main advantage of trading using opposite Mainstay Mackay and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Mainstay Conservative 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 Conservative will offset losses from the drop in Mainstay Conservative's long position.| Mainstay Mackay vs. Tiaa Cref Real Estate | Mainstay Mackay vs. Pender Real Estate | Mainstay Mackay vs. Forum Real Estate | Mainstay Mackay vs. Rems Real Estate |
| Mainstay Conservative vs. Mainstay High Yield | Mainstay Conservative vs. Mainstay Tax Free | Mainstay Conservative vs. Mainstay Income Builder | Mainstay Conservative 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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