Correlation Between Nasdaq 100 and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 and Mainstay Cushing 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 Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Nasdaq 100 and Mainstay Cushing 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 Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Mainstay Cushing.
Diversification Opportunities for Nasdaq 100 and Mainstay Cushing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nasdaq and Mainstay is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp 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 Index Fund are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Mainstay Cushing
Assuming the 90 days horizon Nasdaq 100 Index Fund is expected to generate 0.91 times more return on investment than Mainstay Cushing. However, Nasdaq 100 Index Fund is 1.1 times less risky than Mainstay Cushing. It trades about 0.16 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.13 per unit of risk. If you would invest 5,136 in Nasdaq 100 Index Fund on September 13, 2024 and sell it today you would earn a total of 338.00 from holding Nasdaq 100 Index Fund or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Mainstay Cushing Mlp
Performance |
| Timeline |
| Nasdaq 100 Index |
| Mainstay Cushing Mlp |
Nasdaq 100 and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Mainstay Cushing
The main advantage of trading using opposite Nasdaq 100 and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| Nasdaq 100 vs. Capital Growth Fund | Nasdaq 100 vs. Emerging Markets Fund | Nasdaq 100 vs. High Income Fund | Nasdaq 100 vs. International Fund International |
| Mainstay Cushing vs. Cref Money Market | Mainstay Cushing vs. Putnam Money Market | Mainstay Cushing vs. Elfun Government Money | Mainstay Cushing vs. John Hancock Money |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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