Correlation Between Nasdaq 100 and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Mainstay Pinestone 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 Nasdaq 100 and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 2x Strategy and Mainstay Pinestone Equity, you can compare the effects of market volatilities on Nasdaq 100 and Mainstay Pinestone 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 Nasdaq 100 with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Mainstay Pinestone.
Diversification Opportunities for Nasdaq 100 and Mainstay Pinestone
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq and Mainstay is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 2x Strategy and Mainstay Pinestone Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone Equity and Nasdaq 100 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 Nasdaq 100 2x Strategy are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone Equity has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Mainstay Pinestone
Assuming the 90 days horizon Nasdaq 100 2x Strategy is expected to generate 2.99 times more return on investment than Mainstay Pinestone. However, Nasdaq 100 is 2.99 times more volatile than Mainstay Pinestone Equity. It trades about 0.15 of its potential returns per unit of risk. Mainstay Pinestone Equity is currently generating about 0.06 per unit of risk. If you would invest 36,655 in Nasdaq 100 2x Strategy on September 12, 2024 and sell it today you would earn a total of 6,762 from holding Nasdaq 100 2x Strategy or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 2x Strategy vs. Mainstay Pinestone Equity
Performance |
| Timeline |
| Nasdaq 100 2x |
| Mainstay Pinestone Equity |
Nasdaq 100 and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Mainstay Pinestone
The main advantage of trading using opposite Nasdaq 100 and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Nasdaq 100 vs. Lgm Risk Managed | Nasdaq 100 vs. Franklin High Income | Nasdaq 100 vs. Alliancebernstein Global High | Nasdaq 100 vs. Artisan High Income |
| Mainstay Pinestone vs. Vanguard Total Stock | Mainstay Pinestone vs. Vanguard 500 Index | Mainstay Pinestone vs. Vanguard Total Stock | Mainstay Pinestone vs. Vanguard Total Stock |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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