Correlation Between Mainstay Cushing and Mainstay Tax

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

Diversification Opportunities for Mainstay Cushing and Mainstay Tax

MainstayMainstayDiversified AwayMainstayMainstayDiversified Away100%
-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Mainstay and Mainstay is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cushing Mlp and Mainstay Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Tax Free and Mainstay Cushing 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 Cushing Mlp 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 Free has no effect on the direction of Mainstay Cushing i.e., Mainstay Cushing and Mainstay Tax go up and down completely randomly.

Pair Corralation between Mainstay Cushing and Mainstay Tax

Assuming the 90 days horizon Mainstay Cushing Mlp is expected to generate 4.36 times more return on investment than Mainstay Tax. However, Mainstay Cushing is 4.36 times more volatile than Mainstay Tax Free. It trades about 0.15 of its potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.04 per unit of risk. If you would invest  807.00  in Mainstay Cushing Mlp on November 26, 2024 and sell it today you would earn a total of  373.00  from holding Mainstay Cushing Mlp or generate 46.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Mainstay Cushing Mlp  vs.  Mainstay Tax Free

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50510
JavaScript chart by amCharts 3.21.15CSHNX MKINX
       Timeline  
Mainstay Cushing Mlp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Cushing Mlp has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mainstay Cushing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1111.51212.5
Mainstay Tax Free 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Tax Free has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mainstay Tax is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb9.29.259.39.359.49.45

Mainstay Cushing and Mainstay Tax Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.33-3.24-2.15-1.070.01.072.183.294.45.51 123456
JavaScript chart by amCharts 3.21.15CSHNX MKINX
       Returns  

Pair Trading with Mainstay Cushing and Mainstay Tax

The main advantage of trading using opposite Mainstay Cushing and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cushing 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.
The idea behind Mainstay Cushing Mlp and Mainstay Tax Free 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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