Correlation Between Algorand and Mainstay Mackay

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Can any of the company-specific risk be diversified away by investing in both Algorand 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 Algorand and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Algorand and Mainstay Mackay New, you can compare the effects of market volatilities on Algorand 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 Algorand with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algorand and Mainstay Mackay.

Diversification Opportunities for Algorand and Mainstay Mackay

AlgorandMainstayDiversified AwayAlgorandMainstayDiversified Away100%
0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Algorand and Mainstay is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Algorand 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 Algorand 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 Algorand 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 Algorand i.e., Algorand and Mainstay Mackay go up and down completely randomly.

Pair Corralation between Algorand and Mainstay Mackay

Assuming the 90 days trading horizon Algorand is expected to generate 30.04 times more return on investment than Mainstay Mackay. However, Algorand is 30.04 times more volatile than Mainstay Mackay New. It trades about 0.24 of its potential returns per unit of risk. Mainstay Mackay New is currently generating about 0.02 per unit of risk. If you would invest  11.00  in Algorand on October 30, 2024 and sell it today you would earn a total of  25.00  from holding Algorand or generate 227.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy93.75%
ValuesDaily Returns

Algorand  vs.  Mainstay Mackay New

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 050100150200250300350
JavaScript chart by amCharts 3.21.15ALGO MNOLX
       Timeline  
Algorand 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Algorand are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Algorand exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanJan0.20.30.40.50.6
Mainstay Mackay New 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Mackay New are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Mainstay Mackay is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan9.459.59.559.69.659.79.75

Algorand and Mainstay Mackay Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-28.95-21.68-14.41-7.150.08.216.3924.5932.78 0.51.01.52.02.53.03.5
JavaScript chart by amCharts 3.21.15ALGO MNOLX
       Returns  

Pair Trading with Algorand and Mainstay Mackay

The main advantage of trading using opposite Algorand and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algorand 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.
The idea behind Algorand and Mainstay Mackay New pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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