Correlation Between Mainstay Mackay and Science Technology
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Science Technology 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 Science Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Mackay Strategic and Science Technology Fund, you can compare the effects of market volatilities on Mainstay Mackay and Science Technology 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 Science Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Science Technology.
Diversification Opportunities for Mainstay Mackay and Science Technology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Science is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay Strategic and Science Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Technology 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 Strategic are associated (or correlated) with Science Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Technology has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Science Technology go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Science Technology
Assuming the 90 days horizon Mainstay Mackay is expected to generate 6.48 times less return on investment than Science Technology. But when comparing it to its historical volatility, Mainstay Mackay Strategic is 6.97 times less risky than Science Technology. It trades about 0.09 of its potential returns per unit of risk. Science Technology Fund is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,053 in Science Technology Fund on September 12, 2024 and sell it today you would earn a total of 886.00 from holding Science Technology Fund or generate 43.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mackay Strategic vs. Science Technology Fund
Performance |
| Timeline |
| Mainstay Mackay Strategic |
| Science Technology |
Mainstay Mackay and Science Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Science Technology
The main advantage of trading using opposite Mainstay Mackay and Science Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Science Technology 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 Science Technology will offset losses from the drop in Science Technology's long position.| Mainstay Mackay vs. Science Technology Fund | Mainstay Mackay vs. Hennessy Technology Fund | Mainstay Mackay vs. Technology Ultrasector Profund | Mainstay Mackay vs. Firsthand Technology Opportunities |
| Science Technology vs. Simt Multi Asset Inflation | Science Technology vs. Guidepath Managed Futures | Science Technology vs. Arrow Managed Futures | Science Technology vs. Federated Hermes Inflation |
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 Stocks Directory module to find actively traded stocks across global markets.
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