Correlation Between Mainstay Mackay and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay 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 Mackay 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 Mackay Strategic and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Mainstay Mackay 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 Mackay with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Mainstay Mackay.
Diversification Opportunities for Mainstay Mackay and Mainstay Mackay
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 Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic 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 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 Mackay i.e., Mainstay Mackay and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Mainstay Mackay
Assuming the 90 days horizon Mainstay Mackay is expected to generate 1.09 times less return on investment than Mainstay Mackay. But when comparing it to its historical volatility, Mainstay Mackay Strategic is 1.02 times less risky than Mainstay Mackay. It trades about 0.23 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 944.00 in Mainstay Mackay Strategic on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Mainstay Mackay Strategic or generate 1.27% 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 Mackay Strategic
Performance |
| Timeline |
| Mainstay Mackay Strategic |
| Mainstay Mackay Strategic |
Mainstay Mackay and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Mainstay Mackay
The main advantage of trading using opposite Mainstay Mackay and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay 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 Mackay vs. Multisector Bond Sma | Mainstay Mackay vs. Ambrus Core Bond | Mainstay Mackay vs. Ms Global Fixed | Mainstay Mackay vs. Calamos Dynamic Convertible |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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