Correlation Between Equity Growth and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Equity Growth and Mainstay Tax 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 Equity Growth and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Growth Fund and Mainstay Tax Advantaged, you can compare the effects of market volatilities on Equity Growth and Mainstay Tax 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 Equity Growth with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Growth and Mainstay Tax.
Diversification Opportunities for Equity Growth and Mainstay Tax
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Equity and Mainstay is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Equity Growth Fund and Mainstay Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Tax Advantaged and Equity Growth 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 Equity Growth Fund are associated (or correlated) with Mainstay Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Tax Advantaged has no effect on the direction of Equity Growth i.e., Equity Growth and Mainstay Tax go up and down completely randomly.
Pair Corralation between Equity Growth and Mainstay Tax
Assuming the 90 days horizon Equity Growth Fund is expected to under-perform the Mainstay Tax. In addition to that, Equity Growth is 6.87 times more volatile than Mainstay Tax Advantaged. It trades about -0.07 of its total potential returns per unit of risk. Mainstay Tax Advantaged is currently generating about 0.21 per unit of volatility. If you would invest 924.00 in Mainstay Tax Advantaged on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Mainstay Tax Advantaged or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equity Growth Fund vs. Mainstay Tax Advantaged
Performance |
| Timeline |
| Equity Growth |
| Mainstay Tax Advantaged |
Equity Growth and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Growth and Mainstay Tax
The main advantage of trading using opposite Equity Growth and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Growth position performs unexpectedly, Mainstay Tax 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 Tax will offset losses from the drop in Mainstay Tax's long position.| Equity Growth vs. Hennessy Technology Fund | Equity Growth vs. Virtus Artificial Intelligence | Equity Growth vs. Vanguard Information Technology | Equity Growth vs. Allianzgi Technology Fund |
| Mainstay Tax vs. Hsbc Funds | Mainstay Tax vs. Collegeadvantage 529 Savings | Mainstay Tax vs. Pace Select Advisors | Mainstay Tax vs. Jpmorgan Trust I |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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