Correlation Between NYSE Composite and Mainstay Nerstone
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mainstay Nerstone 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 Nerstone 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 Nerstone Growth, you can compare the effects of market volatilities on NYSE Composite and Mainstay Nerstone 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 Nerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mainstay Nerstone.
Diversification Opportunities for NYSE Composite and Mainstay Nerstone
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mainstay Nerstone Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Nerstone Growth 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 Nerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Nerstone Growth has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mainstay Nerstone go up and down completely randomly.
Pair Corralation between NYSE Composite and Mainstay Nerstone
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.58 times more return on investment than Mainstay Nerstone. However, NYSE Composite is 1.72 times less risky than Mainstay Nerstone. It trades about 0.21 of its potential returns per unit of risk. Mainstay Nerstone Growth is currently generating about 0.07 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 57,378 from holding NYSE Composite or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Mainstay Nerstone Growth
Performance |
| Timeline |
NYSE Composite and Mainstay Nerstone Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mainstay Nerstone Growth
Pair trading matchups for Mainstay Nerstone
Pair Trading with NYSE Composite and Mainstay Nerstone
The main advantage of trading using opposite NYSE Composite and Mainstay Nerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mainstay Nerstone 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 Nerstone will offset losses from the drop in Mainstay Nerstone's long position.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Mainstay Nerstone vs. Mainstay High Yield | Mainstay Nerstone vs. Mainstay Tax Free | Mainstay Nerstone vs. Mainstay Income Builder | Mainstay Nerstone vs. Mainstay Large Cap |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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