Correlation Between Mid-cap 15x and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mid-cap 15x 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 Mid-cap 15x and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap 15x Strategy and Mainstay Mackay Unconstrained, you can compare the effects of market volatilities on Mid-cap 15x 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 Mid-cap 15x with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid-cap 15x and Mainstay Mackay.
Diversification Opportunities for Mid-cap 15x and Mainstay Mackay
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mid-cap and Mainstay is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap 15x Strategy and Mainstay Mackay Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Unco and Mid-cap 15x 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 Mid Cap 15x Strategy 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 Unco has no effect on the direction of Mid-cap 15x i.e., Mid-cap 15x and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mid-cap 15x and Mainstay Mackay
Assuming the 90 days horizon Mid Cap 15x Strategy is expected to generate 5.78 times more return on investment than Mainstay Mackay. However, Mid-cap 15x is 5.78 times more volatile than Mainstay Mackay Unconstrained. It trades about 0.04 of its potential returns per unit of risk. Mainstay Mackay Unconstrained is currently generating about 0.11 per unit of risk. If you would invest 10,980 in Mid Cap 15x Strategy on November 2, 2024 and sell it today you would earn a total of 3,072 from holding Mid Cap 15x Strategy or generate 27.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Cap 15x Strategy vs. Mainstay Mackay Unconstrained
Performance |
| Timeline |
| Mid Cap 15x |
| Mainstay Mackay Unco |
Mid-cap 15x and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid-cap 15x and Mainstay Mackay
The main advantage of trading using opposite Mid-cap 15x and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid-cap 15x 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.| Mid-cap 15x vs. Fidelity Advisor Energy | Mid-cap 15x vs. Invesco Energy Fund | Mid-cap 15x vs. Energy Services Fund | Mid-cap 15x vs. World Energy Fund |
| Mainstay Mackay vs. Ashmore Emerging Markets | Mainstay Mackay vs. Kinetics Market Opportunities | Mainstay Mackay vs. Angel Oak Multi Strategy | Mainstay Mackay vs. Western Asset Short |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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