Correlation Between Mainstay Floating and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Floating 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 Floating 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 Floating Rate and Mainstay Mackay Infrastructure, you can compare the effects of market volatilities on Mainstay Floating 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 Floating with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Floating and Mainstay Mackay.
Diversification Opportunities for Mainstay Floating and Mainstay Mackay
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mainstay and Mainstay is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Floating Rate 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 Floating 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 Floating Rate 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 Floating i.e., Mainstay Floating and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Floating and Mainstay Mackay
Assuming the 90 days horizon Mainstay Floating Rate is expected to generate 0.47 times more return on investment than Mainstay Mackay. However, Mainstay Floating Rate is 2.15 times less risky than Mainstay Mackay. It trades about 0.21 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 735.00 in Mainstay Floating Rate on August 30, 2024 and sell it today you would earn a total of 155.00 from holding Mainstay Floating Rate or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Floating Rate vs. Mainstay Mackay Infrastructure
Performance |
| Timeline |
| Mainstay Floating Rate |
| Mainstay Mackay Infr |
Mainstay Floating and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Floating and Mainstay Mackay
The main advantage of trading using opposite Mainstay Floating and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Floating 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 Floating vs. Versatile Bond Portfolio | Mainstay Floating vs. Transamerica Emerging Markets | Mainstay Floating vs. Ambrus Core Bond | Mainstay Floating vs. Bbh Intermediate Municipal |
| Mainstay Mackay vs. Tekla Healthcare Opportunities | Mainstay Mackay vs. Blackrock Health Sciences | Mainstay Mackay vs. Eventide Healthcare Life | Mainstay Mackay vs. The Gabelli Healthcare |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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