Correlation Between Commodities Strategy and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Commodities Strategy 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 Commodities Strategy and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commodities Strategy Fund and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Commodities Strategy 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 Commodities Strategy with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commodities Strategy and Mainstay Mackay.
Diversification Opportunities for Commodities Strategy and Mainstay Mackay
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Commodities and Mainstay is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Commodities Strategy Fund and Mainstay Mackay Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Strategic and Commodities Strategy 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 Commodities Strategy Fund 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 Strategic has no effect on the direction of Commodities Strategy i.e., Commodities Strategy and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Commodities Strategy and Mainstay Mackay
Assuming the 90 days horizon Commodities Strategy Fund is expected to generate 8.83 times more return on investment than Mainstay Mackay. However, Commodities Strategy is 8.83 times more volatile than Mainstay Mackay Strategic. It trades about 0.1 of its potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about 0.43 per unit of risk. If you would invest 2,894 in Commodities Strategy Fund on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Commodities Strategy Fund or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Commodities Strategy Fund vs. Mainstay Mackay Strategic
Performance |
| Timeline |
| Commodities Strategy |
| Mainstay Mackay Strategic |
Commodities Strategy and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commodities Strategy and Mainstay Mackay
The main advantage of trading using opposite Commodities Strategy and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commodities Strategy 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.| Commodities Strategy vs. Basic Materials Fund | Commodities Strategy vs. Energy Services Fund | Commodities Strategy vs. Energy Fund Investor | Commodities Strategy vs. Real Estate Fund |
| Mainstay Mackay vs. Vanguard Intermediate Term Tax Exempt | Mainstay Mackay vs. Vanguard Intermediate Term Tax Exempt | Mainstay Mackay vs. Tax Exempt Bond | Mainstay Mackay vs. Tax Exempt Bond |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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