Correlation Between Mainstay Epoch and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch 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 Epoch 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 Epoch Global and Mainstay Tax Free, you can compare the effects of market volatilities on Mainstay Epoch 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 Epoch with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Mainstay Tax.
Diversification Opportunities for Mainstay Epoch and Mainstay Tax
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Global 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 Epoch 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 Epoch Global 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 Epoch i.e., Mainstay Epoch and Mainstay Tax go up and down completely randomly.
Pair Corralation between Mainstay Epoch and Mainstay Tax
Assuming the 90 days horizon Mainstay Epoch Global is expected to generate 3.46 times more return on investment than Mainstay Tax. However, Mainstay Epoch is 3.46 times more volatile than Mainstay Tax Free. It trades about 0.06 of its potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.06 per unit of risk. If you would invest 1,999 in Mainstay Epoch Global on September 14, 2024 and sell it today you would earn a total of 212.00 from holding Mainstay Epoch Global or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Epoch Global vs. Mainstay Tax Free
Performance |
| Timeline |
| Mainstay Epoch Global |
| Mainstay Tax Free |
Mainstay Epoch and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Epoch and Mainstay Tax
The main advantage of trading using opposite Mainstay Epoch and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch 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.| Mainstay Epoch vs. Allianzgi Convertible Income | Mainstay Epoch vs. Calamos Dynamic Convertible | Mainstay Epoch vs. Advent Claymore Convertible | Mainstay Epoch vs. Putnam Convertible Incm Gwth |
| Mainstay Tax vs. Mainstay Large Cap | Mainstay Tax vs. Mainstay Large Cap | Mainstay Tax vs. Mainstay Large Cap | Mainstay Tax vs. Mainstay Large Cap |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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