Correlation Between Mainstay Mackay and Intermediate-term
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Intermediate-term 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 Intermediate-term 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 Intermediate Term Tax Free Bond, you can compare the effects of market volatilities on Mainstay Mackay and Intermediate-term 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 Intermediate-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Intermediate-term.
Diversification Opportunities for Mainstay Mackay and Intermediate-term
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mainstay and Intermediate-term is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay Strategic and Intermediate Term Tax Free Bon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Term 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 Intermediate-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Term Tax has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Intermediate-term go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Intermediate-term
Assuming the 90 days horizon Mainstay Mackay Strategic is expected to generate 0.94 times more return on investment than Intermediate-term. However, Mainstay Mackay Strategic is 1.07 times less risky than Intermediate-term. It trades about 0.11 of its potential returns per unit of risk. Intermediate Term Tax Free Bond is currently generating about 0.1 per unit of risk. If you would invest 930.00 in Mainstay Mackay Strategic on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Mainstay Mackay Strategic or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Mackay Strategic vs. Intermediate Term Tax Free Bon
Performance |
| Timeline |
| Mainstay Mackay Strategic |
| Intermediate Term Tax |
Mainstay Mackay and Intermediate-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Intermediate-term
The main advantage of trading using opposite Mainstay Mackay and Intermediate-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Intermediate-term 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 Intermediate-term will offset losses from the drop in Intermediate-term's long position.| Mainstay Mackay vs. Intermediate Term Tax Free Bond | Mainstay Mackay vs. Morningstar Municipal Bond | Mainstay Mackay vs. Vanguard California Long Term | Mainstay Mackay vs. Federated Pennsylvania Municipal |
| Intermediate-term vs. Mesirow Financial Small | Intermediate-term vs. Goldman Sachs Financial | Intermediate-term vs. Royce Global Financial | Intermediate-term vs. Davis Financial Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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