Correlation Between Mainstay Cushing and Nasdaq-100 Index
Can any of the company-specific risk be diversified away by investing in both Mainstay Cushing and Nasdaq-100 Index 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 Mainstay Cushing and Nasdaq-100 Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cushing Mlp and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Mainstay Cushing and Nasdaq-100 Index 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 Mainstay Cushing with a short position of Nasdaq-100 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cushing and Nasdaq-100 Index.
Diversification Opportunities for Mainstay Cushing and Nasdaq-100 Index
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Nasdaq-100 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index and Mainstay Cushing 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 Mainstay Cushing Mlp are associated (or correlated) with Nasdaq-100 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Nasdaq-100 Index go up and down completely randomly.
Pair Corralation between Mainstay Cushing and Nasdaq-100 Index
Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 0.91 times more return on investment than Nasdaq-100 Index. However, Mainstay Cushing Mlp is 1.1 times less risky than Nasdaq-100 Index. It trades about -0.25 of its potential returns per unit of risk. Nasdaq 100 Index Fund is currently generating about -0.27 per unit of risk. If you would invest 1,186 in Mainstay Cushing Mlp on December 10, 2024 and sell it today you would lose (70.00) from holding Mainstay Cushing Mlp or give up 5.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mainstay Cushing Mlp vs. Nasdaq 100 Index Fund
Performance |
Timeline |
Mainstay Cushing Mlp |
Nasdaq 100 Index |
Mainstay Cushing and Nasdaq-100 Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Cushing and Nasdaq-100 Index
The main advantage of trading using opposite Mainstay Cushing and Nasdaq-100 Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing position performs unexpectedly, Nasdaq-100 Index 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 Nasdaq-100 Index will offset losses from the drop in Nasdaq-100 Index's long position.Mainstay Cushing vs. Pioneer Multi Asset Ultrashort | Mainstay Cushing vs. Barings Active Short | Mainstay Cushing vs. Cmg Ultra Short | Mainstay Cushing vs. Blackrock Short Term Inflat Protected |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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