Correlation Between 361 Global and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both 361 Global 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 361 Global and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 361 Global Longshort and Mainstay Mackay Strategic, you can compare the effects of market volatilities on 361 Global 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 361 Global with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Mainstay Mackay.
Diversification Opportunities for 361 Global and Mainstay Mackay
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 361 and Mainstay is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort 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 361 Global 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 361 Global Longshort 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 361 Global i.e., 361 Global and Mainstay Mackay go up and down completely randomly.
Pair Corralation between 361 Global and Mainstay Mackay
Assuming the 90 days horizon 361 Global Longshort is expected to under-perform the Mainstay Mackay. In addition to that, 361 Global is 7.65 times more volatile than Mainstay Mackay Strategic. It trades about -0.11 of its total potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about -0.01 per unit of volatility. If you would invest 937.00 in Mainstay Mackay Strategic on December 28, 2024 and sell it today you would lose (1.00) from holding Mainstay Mackay Strategic or give up 0.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
361 Global Longshort vs. Mainstay Mackay Strategic
Performance |
Timeline |
361 Global Longshort |
Mainstay Mackay Strategic |
361 Global and Mainstay Mackay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 361 Global and Mainstay Mackay
The main advantage of trading using opposite 361 Global and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global 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.361 Global vs. Franklin Adjustable Government | 361 Global vs. Us Government Securities | 361 Global vs. Blackrock Government Bond | 361 Global vs. Us Government Securities |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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