Correlation Between Sp Smallcap and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Sp Smallcap 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 Sp Smallcap and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp Smallcap 600 and Mainstay Mackay Tax, you can compare the effects of market volatilities on Sp Smallcap 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 Sp Smallcap with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Smallcap and Mainstay Mackay.
Diversification Opportunities for Sp Smallcap and Mainstay Mackay
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between RYSVX and Mainstay is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sp Smallcap 600 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 Sp Smallcap 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 Sp Smallcap 600 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 Sp Smallcap i.e., Sp Smallcap and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Sp Smallcap and Mainstay Mackay
Assuming the 90 days horizon Sp Smallcap 600 is expected to generate 6.45 times more return on investment than Mainstay Mackay. However, Sp Smallcap is 6.45 times more volatile than Mainstay Mackay Tax. It trades about 0.13 of its potential returns per unit of risk. Mainstay Mackay Tax is currently generating about 0.41 per unit of risk. If you would invest 21,446 in Sp Smallcap 600 on September 13, 2024 and sell it today you would earn a total of 495.00 from holding Sp Smallcap 600 or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sp Smallcap 600 vs. Mainstay Mackay Tax
Performance |
| Timeline |
| Sp Smallcap 600 |
| Mainstay Mackay Tax |
Sp Smallcap and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp Smallcap and Mainstay Mackay
The main advantage of trading using opposite Sp Smallcap and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Smallcap 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.| Sp Smallcap vs. Basic Materials Fund | Sp Smallcap vs. Basic Materials Fund | Sp Smallcap vs. Banking Fund Class | Sp Smallcap vs. Basic Materials Fund |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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