Correlation Between Mainstay Mackay and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Huber Capital 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 Huber Capital 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 Huber Capital Diversified, you can compare the effects of market volatilities on Mainstay Mackay and Huber Capital 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Huber Capital.
Diversification Opportunities for Mainstay Mackay and Huber Capital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MainStay and Huber is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay New and Huber Capital Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Diversified 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Diversified has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Huber Capital go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Huber Capital
Assuming the 90 days horizon Mainstay Mackay New is expected to generate 0.3 times more return on investment than Huber Capital. However, Mainstay Mackay New is 3.37 times less risky than Huber Capital. It trades about -0.37 of its potential returns per unit of risk. Huber Capital Diversified is currently generating about -0.22 per unit of risk. If you would invest 980.00 in Mainstay Mackay New on October 6, 2024 and sell it today you would lose (21.00) from holding Mainstay Mackay New or give up 2.14% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Mainstay Mackay New vs. Huber Capital Diversified
Performance |
Timeline |
Mainstay Mackay New |
Huber Capital Diversified |
Mainstay Mackay and Huber Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mainstay Mackay and Huber Capital
The main advantage of trading using opposite Mainstay Mackay and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.Mainstay Mackay vs. Wells Fargo Diversified | Mainstay Mackay vs. Madison Diversified Income | Mainstay Mackay vs. Allianzgi Diversified Income | Mainstay Mackay vs. Lord Abbett Diversified |
Huber Capital vs. Growth Strategy Fund | Huber Capital vs. Rational Defensive Growth | Huber Capital vs. Smallcap Growth Fund | Huber Capital vs. Qs Growth Fund |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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