Correlation Between NYSE Composite and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mainstay Cushing 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 NYSE Composite and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Mainstay Cushing Mlp, you can compare the effects of market volatilities on NYSE Composite and Mainstay Cushing 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 NYSE Composite with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mainstay Cushing.
Diversification Opportunities for NYSE Composite and Mainstay Cushing
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Mainstay is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mainstay Cushing go up and down completely randomly.
Pair Corralation between NYSE Composite and Mainstay Cushing
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.99 times less return on investment than Mainstay Cushing. But when comparing it to its historical volatility, NYSE Composite is 1.31 times less risky than Mainstay Cushing. It trades about 0.08 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 722.00 in Mainstay Cushing Mlp on September 3, 2024 and sell it today you would earn a total of 505.00 from holding Mainstay Cushing Mlp or generate 69.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Mainstay Cushing Mlp
Performance |
| Timeline |
NYSE Composite and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mainstay Cushing Mlp
Pair trading matchups for Mainstay Cushing
Pair Trading with NYSE Composite and Mainstay Cushing
The main advantage of trading using opposite NYSE Composite and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Mainstay Cushing vs. Touchstone Premium Yield | Mainstay Cushing vs. Limited Term Tax | Mainstay Cushing vs. The Fixed Income | Mainstay Cushing vs. Blrc Sgy Mnp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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