Correlation Between Managed Account and Mkeax
Can any of the company-specific risk be diversified away by investing in both Managed Account and Mkeax 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 Managed Account and Mkeax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Managed Account Series and Mkeax, you can compare the effects of market volatilities on Managed Account and Mkeax 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 Managed Account with a short position of Mkeax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Managed Account and Mkeax.
Diversification Opportunities for Managed Account and Mkeax
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Managed and Mkeax is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Managed Account Series and Mkeax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mkeax and Managed Account 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 Managed Account Series are associated (or correlated) with Mkeax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mkeax has no effect on the direction of Managed Account i.e., Managed Account and Mkeax go up and down completely randomly.
Pair Corralation between Managed Account and Mkeax
Assuming the 90 days horizon Managed Account Series is expected to generate 0.22 times more return on investment than Mkeax. However, Managed Account Series is 4.63 times less risky than Mkeax. It trades about 0.25 of its potential returns per unit of risk. Mkeax is currently generating about 0.04 per unit of risk. If you would invest 887.00 in Managed Account Series on July 20, 2025 and sell it today you would earn a total of 25.00 from holding Managed Account Series or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Managed Account Series vs. Mkeax
Performance |
| Timeline |
| Managed Account Series |
| Mkeax |
Managed Account and Mkeax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Managed Account and Mkeax
The main advantage of trading using opposite Managed Account and Mkeax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Managed Account position performs unexpectedly, Mkeax 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 Mkeax will offset losses from the drop in Mkeax's long position.| Managed Account vs. Icon Natural Resources | Managed Account vs. Gamco Natural Resources | Managed Account vs. Goehring Rozencwajg Resources | Managed Account vs. Calvert Global Energy |
| Mkeax vs. Davis Financial Fund | Mkeax vs. Rmb Mendon Financial | Mkeax vs. Gabelli Global Financial | Mkeax vs. Transamerica Financial Life |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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