Correlation Between Baron Health and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Baron Health 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 Baron Health and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baron Health Care and Mainstay Mackay Strategic, you can compare the effects of market volatilities on Baron Health 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 Baron Health with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baron Health and Mainstay Mackay.
Diversification Opportunities for Baron Health and Mainstay Mackay
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baron and Mainstay is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Baron Health Care 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 Baron Health 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 Baron Health Care 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 Baron Health i.e., Baron Health and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Baron Health and Mainstay Mackay
Assuming the 90 days horizon Baron Health Care is expected to under-perform the Mainstay Mackay. In addition to that, Baron Health is 4.82 times more volatile than Mainstay Mackay Strategic. It trades about -0.03 of its total potential returns per unit of risk. Mainstay Mackay Strategic is currently generating about -0.03 per unit of volatility. If you would invest 937.00 in Mainstay Mackay Strategic on December 29, 2024 and sell it today you would lose (3.00) from holding Mainstay Mackay Strategic or give up 0.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Baron Health Care vs. Mainstay Mackay Strategic
Performance |
Timeline |
Baron Health Care |
Mainstay Mackay Strategic |
Baron Health and Mainstay Mackay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baron Health and Mainstay Mackay
The main advantage of trading using opposite Baron Health and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baron Health 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.Baron Health vs. Qs Growth Fund | Baron Health vs. Eip Growth And | Baron Health vs. Morningstar Growth Etf | Baron Health vs. Mid Cap Growth |
Mainstay Mackay vs. The Equity Growth | Mainstay Mackay vs. Qs Growth Fund | Mainstay Mackay vs. Ab Centrated Growth | Mainstay Mackay vs. Tfa Alphagen Growth |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |