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 Tax, 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
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Mainstay is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Mainstay Mackay Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Tax 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 Tax 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 generate 1.92 times more return on investment than Mainstay Mackay. However, NYSE Composite is 1.92 times more volatile than Mainstay Mackay Tax. It trades about 0.42 of its potential returns per unit of risk. Mainstay Mackay Tax is currently generating about 0.19 per unit of risk. If you would invest 1,923,895 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 103,309 from holding NYSE Composite or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NYSE Composite vs. Mainstay Mackay Tax
Performance |
| Timeline |
NYSE Composite and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Mainstay Mackay Tax
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. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Mainstay Mackay vs. Mainstay Tax Free | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay vs. Mainstay Large Cap | Mainstay Mackay 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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