Correlation Between Mainstay Mackay and Mainstay California
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Mainstay California 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 California 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 Mainstay California Tax, you can compare the effects of market volatilities on Mainstay Mackay and Mainstay California 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 California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Mainstay California.
Diversification Opportunities for Mainstay Mackay and Mainstay California
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay Strategic and Mainstay California Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay California Tax 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 Mainstay California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay California Tax has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Mainstay California go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Mainstay California
Assuming the 90 days horizon Mainstay Mackay is expected to generate 1.32 times less return on investment than Mainstay California. But when comparing it to its historical volatility, Mainstay Mackay Strategic is 1.36 times less risky than Mainstay California. It trades about 0.09 of its potential returns per unit of risk. Mainstay California Tax is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Mainstay California Tax on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Mainstay California Tax or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mackay Strategic vs. Mainstay California Tax
Performance |
| Timeline |
| Mainstay Mackay Strategic |
| Mainstay California Tax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Mainstay Mackay and Mainstay California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Mainstay California
The main advantage of trading using opposite Mainstay Mackay and Mainstay California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Mainstay California 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 California will offset losses from the drop in Mainstay California's long position.| Mainstay Mackay vs. Touchstone Ultra Short | Mainstay Mackay vs. Rbc Short Duration | Mainstay Mackay vs. Goldman Sachs Short Term | Mainstay Mackay vs. Quantitative Longshort Equity |
| Mainstay California vs. Old Westbury Large | Mainstay California vs. T Rowe Price | Mainstay California vs. T Rowe Price | Mainstay California vs. Aqr 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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