Correlation Between Ab Small and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Mainstay Mackay Tax, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Mainstay Mackay.
Diversification Opportunities for Ab Small and Mainstay Mackay
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SCYVX and Mainstay is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap 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 Ab Small 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 Ab Small Cap 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 Ab Small i.e., Ab Small and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Ab Small and Mainstay Mackay
Assuming the 90 days horizon Ab Small Cap is expected to generate 5.04 times more return on investment than Mainstay Mackay. However, Ab Small is 5.04 times more volatile than Mainstay Mackay Tax. It trades about 0.07 of its potential returns per unit of risk. Mainstay Mackay Tax is currently generating about 0.09 per unit of risk. If you would invest 1,279 in Ab Small Cap on September 12, 2024 and sell it today you would earn a total of 352.00 from holding Ab Small Cap or generate 27.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Ab Small Cap vs. Mainstay Mackay Tax
Performance |
| Timeline |
| Ab Small Cap |
| Mainstay Mackay Tax |
Ab Small and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Mainstay Mackay
The main advantage of trading using opposite Ab Small and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. Vanguard Small Cap Value | Ab Small vs. Vanguard Small Cap Value | Ab Small vs. Us Small Cap | Ab Small vs. Us Targeted Value |
| Mainstay Mackay vs. Ab Small Cap | Mainstay Mackay vs. William Blair Small | Mainstay Mackay vs. Queens Road Small | Mainstay Mackay vs. Amg River Road |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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