Correlation Between Ab Municipal and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Mainstay Map 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 Ab Municipal and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Mainstay Map Equity, you can compare the effects of market volatilities on Ab Municipal and Mainstay Map 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 Ab Municipal with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Mainstay Map.
Diversification Opportunities for Ab Municipal and Mainstay Map
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUNTX and Mainstay is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Ab Municipal 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 Ab Municipal Bond are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Ab Municipal i.e., Ab Municipal and Mainstay Map go up and down completely randomly.
Pair Corralation between Ab Municipal and Mainstay Map
Assuming the 90 days horizon Ab Municipal is expected to generate 7.3 times less return on investment than Mainstay Map. But when comparing it to its historical volatility, Ab Municipal Bond is 5.52 times less risky than Mainstay Map. It trades about 0.17 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,426 in Mainstay Map Equity on August 31, 2024 and sell it today you would earn a total of 141.00 from holding Mainstay Map Equity or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Mainstay Map Equity
Performance |
| Timeline |
| Ab Municipal Bond |
| Mainstay Map Equity |
Ab Municipal and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Mainstay Map
The main advantage of trading using opposite Ab Municipal and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Ab Municipal vs. Qs Small Capitalization | Ab Municipal vs. T Rowe Price | Ab Municipal vs. Chartwell Small Cap | Ab Municipal vs. Small Pany Growth |
| Mainstay Map vs. Ab Bond Inflation | Mainstay Map vs. Versatile Bond Portfolio | Mainstay Map vs. Multisector Bond Sma | Mainstay Map vs. Inflation Protected Bond 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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