Correlation Between Mainstay Total and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Total 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 Total 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 Total Return and Mainstay Mackay Infrastructure, you can compare the effects of market volatilities on Mainstay Total 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 Total with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Total and Mainstay Mackay.
Diversification Opportunities for Mainstay Total and Mainstay Mackay
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Mainstay is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Total Return and Mainstay Mackay Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Infr and Mainstay Total 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 Total Return 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 Infr has no effect on the direction of Mainstay Total i.e., Mainstay Total and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Total and Mainstay Mackay
Assuming the 90 days horizon Mainstay Total Return is expected to generate 1.08 times more return on investment than Mainstay Mackay. However, Mainstay Total is 1.08 times more volatile than Mainstay Mackay Infrastructure. It trades about 0.06 of its potential returns per unit of risk. Mainstay Mackay Infrastructure is currently generating about 0.05 per unit of risk. If you would invest 818.00 in Mainstay Total Return on August 30, 2024 and sell it today you would earn a total of 104.00 from holding Mainstay Total Return or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Total Return vs. Mainstay Mackay Infrastructure
Performance |
| Timeline |
| Mainstay Total Return |
| Mainstay Mackay Infr |
Mainstay Total and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Total and Mainstay Mackay
The main advantage of trading using opposite Mainstay Total and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Total 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 Total vs. Touchstone Small Cap | Mainstay Total vs. Qs Small Capitalization | Mainstay Total vs. Ab Small Cap | Mainstay Total vs. Artisan Small Cap |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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