Correlation Between Vanguard New and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Vanguard New 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 Vanguard New and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard New York and Mainstay Mackay New, you can compare the effects of market volatilities on Vanguard New 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 Vanguard New with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard New and Mainstay Mackay.
Diversification Opportunities for Vanguard New and Mainstay Mackay
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Mainstay is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard New York and Mainstay Mackay New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay New and Vanguard New 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 Vanguard New York 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 New has no effect on the direction of Vanguard New i.e., Vanguard New and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Vanguard New and Mainstay Mackay
Assuming the 90 days horizon Vanguard New York is expected to generate 1.05 times more return on investment than Mainstay Mackay. However, Vanguard New is 1.05 times more volatile than Mainstay Mackay New. It trades about 0.16 of its potential returns per unit of risk. Mainstay Mackay New is currently generating about 0.15 per unit of risk. If you would invest 1,085 in Vanguard New York on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Vanguard New York or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard New York vs. Mainstay Mackay New
Performance |
| Timeline |
| Vanguard New York |
| Mainstay Mackay New |
Vanguard New and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard New and Mainstay Mackay
The main advantage of trading using opposite Vanguard New and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard New 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.| Vanguard New vs. Vanguard New Jersey | Vanguard New vs. Vanguard Long Term Tax Exempt | Vanguard New vs. Vanguard Massachusetts Tax Exempt | Vanguard New vs. Vanguard Ohio Long Term |
| Mainstay Mackay vs. Invesco Rochester New | Mainstay Mackay vs. Oppenheimer Rochester | Mainstay Mackay vs. Oppenheimer Rochester | Mainstay Mackay vs. Vanguard New York |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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