Correlation Between Mainstay Retirement and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Mainstay Retirement and Mainstay Cushing 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 Retirement and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Retirement 2040 and Mainstay Cushing Energy, you can compare the effects of market volatilities on Mainstay Retirement and Mainstay Cushing 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 Retirement with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Retirement and Mainstay Cushing.
Diversification Opportunities for Mainstay Retirement and Mainstay Cushing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Retirement 2040 and Mainstay Cushing Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Energy and Mainstay Retirement 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 Retirement 2040 are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Energy has no effect on the direction of Mainstay Retirement i.e., Mainstay Retirement and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Mainstay Retirement and Mainstay Cushing
If you would invest (100.00) in Mainstay Cushing Energy on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Mainstay Cushing Energy or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Retirement 2040 vs. Mainstay Cushing Energy
Performance |
| Timeline |
| Mainstay Retirement 2040 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mainstay Cushing Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mainstay Retirement and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Retirement and Mainstay Cushing
The main advantage of trading using opposite Mainstay Retirement and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Retirement position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.The idea behind Mainstay Retirement 2040 and Mainstay Cushing Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mainstay Cushing vs. Quantitative Longshort Equity | Mainstay Cushing vs. Maryland Short Term Tax Free | Mainstay Cushing vs. Astor Longshort Fund | Mainstay Cushing vs. Siit Ultra Short |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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