Correlation Between Mainstay Mackay and Equalize Community

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

Diversification Opportunities for Mainstay Mackay and Equalize Community

MainstayEqualizeDiversified AwayMainstayEqualizeDiversified Away100%
0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Mainstay and Equalize is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay New and Equalize Community Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equalize Community and Mainstay Mackay 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 Mackay New are associated (or correlated) with Equalize Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equalize Community has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Equalize Community go up and down completely randomly.

Pair Corralation between Mainstay Mackay and Equalize Community

Assuming the 90 days horizon Mainstay Mackay New is expected to generate 1.52 times more return on investment than Equalize Community. However, Mainstay Mackay is 1.52 times more volatile than Equalize Community Development. It trades about 0.01 of its potential returns per unit of risk. Equalize Community Development is currently generating about -0.02 per unit of risk. If you would invest  958.00  in Mainstay Mackay New on October 31, 2024 and sell it today you would earn a total of  1.00  from holding Mainstay Mackay New or generate 0.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy35.59%
ValuesDaily Returns

Mainstay Mackay New  vs.  Equalize Community Development

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10123
JavaScript chart by amCharts 3.21.15MNOLX EQCDX
       Timeline  
Mainstay Mackay New 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mainstay Mackay New has generated negative risk-adjusted returns adding no value to fund investors. 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
Equalize Community 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Equalize Community Development has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Equalize Community is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mainstay Mackay and Equalize Community Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.48-0.28-0.0961-0.0503-0.0068650.03110.07550.190.390.59 12345
JavaScript chart by amCharts 3.21.15MNOLX EQCDX
       Returns  

Pair Trading with Mainstay Mackay and Equalize Community

The main advantage of trading using opposite Mainstay Mackay and Equalize Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Equalize Community 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 Equalize Community will offset losses from the drop in Equalize Community's long position.
The idea behind Mainstay Mackay New and Equalize Community Development 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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