Correlation Between NYSE Composite and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Mainstay Mackay 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 Mackay Short, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Mainstay Mackay.
Diversification Opportunities for NYSE Composite and Mainstay Mackay
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Mainstay is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mainstay Mackay Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Short 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 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 Short has no effect on the direction of NYSE Composite i.e., NYSE Composite and Mainstay Mackay go up and down completely randomly.
Pair Corralation between NYSE Composite and Mainstay Mackay
Assuming the 90 days trading horizon NYSE Composite is expected to under-perform the Mainstay Mackay. In addition to that, NYSE Composite is 5.16 times more volatile than Mainstay Mackay Short. It trades about -0.05 of its total potential returns per unit of risk. Mainstay Mackay Short is currently generating about 0.14 per unit of volatility. If you would invest 926.00 in Mainstay Mackay Short on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Mainstay Mackay Short or generate 0.32% 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 Mackay Short
Performance |
| Timeline |
NYSE Composite and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mainstay Mackay Short
Pair trading matchups for Mainstay Mackay
Pair Trading with NYSE Composite and Mainstay Mackay
The main advantage of trading using opposite NYSE Composite and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Unum Group | NYSE Composite vs. Palomar Holdings | NYSE Composite vs. Fidelity National Financial | NYSE Composite vs. ZW Data Action |
| Mainstay Mackay vs. Tax Managed International Equity | Mainstay Mackay vs. Transamerica Funds | Mainstay Mackay vs. Guidemark E Fixed | Mainstay Mackay vs. Doubleline Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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