Correlation Between NYSE Composite and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on NYSE Composite and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mainstay Large.
Diversification Opportunities for NYSE Composite and Mainstay Large
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mainstay Large go up and down completely randomly.
Pair Corralation between NYSE Composite and Mainstay Large
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.53 times more return on investment than Mainstay Large. However, NYSE Composite is 1.87 times less risky than Mainstay Large. It trades about 0.27 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.1 per unit of risk. If you would invest 1,945,669 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 75,313 from holding NYSE Composite or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Mainstay Large Cap
Performance |
| Timeline |
NYSE Composite and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mainstay Large Cap
Pair trading matchups for Mainstay Large
Pair Trading with NYSE Composite and Mainstay Large
The main advantage of trading using opposite NYSE Composite and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Mainstay Large vs. Morningstar Municipal Bond | Mainstay Large vs. Ab Impact Municipal | Mainstay Large vs. Gamco Global Telecommunications | Mainstay Large vs. Nuveen Massachusetts Municipal |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |