Correlation Between Mainstay Income and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Income 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 Mainstay Income and Mainstay Mackay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Income Builder and Mainstay Mackay California, you can compare the effects of market volatilities on Mainstay Income 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 Mainstay Income with a short position of Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Mackay.
Diversification Opportunities for Mainstay Income and Mainstay Mackay
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Mainstay Mackay California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Cali and Mainstay Income 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 Income Builder 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 Cali has no effect on the direction of Mainstay Income i.e., Mainstay Income and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Income and Mainstay Mackay
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 1.74 times more return on investment than Mainstay Mackay. However, Mainstay Income is 1.74 times more volatile than Mainstay Mackay California. It trades about 0.1 of its potential returns per unit of risk. Mainstay Mackay California is currently generating about 0.07 per unit of risk. If you would invest 2,077 in Mainstay Income Builder on September 8, 2024 and sell it today you would earn a total of 55.00 from holding Mainstay Income Builder or generate 2.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Mainstay Income Builder vs. Mainstay Mackay California
Performance |
Timeline |
Mainstay Income Builder |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Mainstay Mackay Cali |
Mainstay Income and Mainstay Mackay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Income and Mainstay Mackay
The main advantage of trading using opposite Mainstay Income and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income 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.Mainstay Income vs. Rbc Emerging Markets | Mainstay Income vs. Astor Longshort Fund | Mainstay Income vs. Sp Midcap Index | Mainstay Income vs. Barings Active Short |
Mainstay Mackay vs. Growth Fund Of | Mainstay Mackay vs. Us Vector Equity | Mainstay Mackay vs. T Rowe Price | Mainstay Mackay vs. Scharf Global Opportunity |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |