Correlation Between Mainstay Mackay and Rbb Fund

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

Diversification Opportunities for Mainstay Mackay and Rbb Fund

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Mainstay and Rbb is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay Strategic and Rbb Fund Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbb Fund Trust 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 Strategic are associated (or correlated) with Rbb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbb Fund Trust has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Rbb Fund go up and down completely randomly.

Pair Corralation between Mainstay Mackay and Rbb Fund

If you would invest  898.00  in Mainstay Mackay Strategic on October 9, 2024 and sell it today you would earn a total of  48.00  from holding Mainstay Mackay Strategic or generate 5.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy55.56%
ValuesDaily Returns

Mainstay Mackay Strategic  vs.  Rbb Fund Trust

 Performance 
       Timeline  
Mainstay Mackay Strategic 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Rbb Fund Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Mainstay Mackay and Rbb Fund Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mainstay Mackay and Rbb Fund

The main advantage of trading using opposite Mainstay Mackay and Rbb Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Rbb Fund 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 Rbb Fund will offset losses from the drop in Rbb Fund's long position.
The idea behind Mainstay Mackay Strategic and Rbb Fund Trust 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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