Correlation Between Mainstay California and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay California 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 California 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 California Tax and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Mainstay California 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 California with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay California and Mainstay Mackay.
Diversification Opportunities for Mainstay California and Mainstay Mackay
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay California Tax and Mainstay Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic and Mainstay California 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 California Tax 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 Strategic has no effect on the direction of Mainstay California i.e., Mainstay California and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay California and Mainstay Mackay
Assuming the 90 days horizon Mainstay California Tax is expected to generate 1.21 times more return on investment than Mainstay Mackay. However, Mainstay California is 1.21 times more volatile than Mainstay Mackay Strategic. It trades about 0.24 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.24 per unit of risk. If you would invest 969.00 in Mainstay California Tax on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Mainstay California Tax or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mainstay California Tax vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Mainstay California Tax |
| Mainstay Mackay Strategic |
Mainstay California and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay California and Mainstay Mackay
The main advantage of trading using opposite Mainstay California and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay California 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 California vs. Power Global Tactical | Mainstay California vs. Morgan Stanley Global | Mainstay California vs. Barings Global Floating | Mainstay California vs. Us Global Investors |
| Mainstay Mackay vs. Dreyfusstandish Global Fixed | Mainstay Mackay vs. Dodge International Stock | Mainstay Mackay vs. Gmo Global Equity | Mainstay Mackay vs. Rbc Global Equity |
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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