Correlation Between Guidepath Managed and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Guidepath Managed 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 Guidepath Managed and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Mainstay Tax Free, you can compare the effects of market volatilities on Guidepath Managed 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 Guidepath Managed with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Managed and Mainstay Tax.
Diversification Opportunities for Guidepath Managed and Mainstay Tax
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guidepath and Mainstay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures 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 Guidepath Managed 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 Guidepath Managed Futures 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 Guidepath Managed i.e., Guidepath Managed and Mainstay Tax go up and down completely randomly.
Pair Corralation between Guidepath Managed and Mainstay Tax
Assuming the 90 days horizon Guidepath Managed is expected to generate 1.06 times less return on investment than Mainstay Tax. In addition to that, Guidepath Managed is 3.09 times more volatile than Mainstay Tax Free. It trades about 0.12 of its total potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.4 per unit of volatility. If you would invest 938.00 in Mainstay Tax Free on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Mainstay Tax Free or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Mainstay Tax Free
Performance |
| Timeline |
| Guidepath Managed Futures |
| Mainstay Tax Free |
Guidepath Managed and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath Managed and Mainstay Tax
The main advantage of trading using opposite Guidepath Managed and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Managed 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.| Guidepath Managed vs. T Rowe Price | Guidepath Managed vs. Oklahoma Municipal Fund | Guidepath Managed vs. Baird Strategic Municipal | Guidepath Managed vs. Transamerica Intermediate Muni |
| Mainstay Tax vs. Deutsche Global Inflation | Mainstay Tax vs. Blackrock Inflation Protected | Mainstay Tax vs. Guggenheim Managed Futures | Mainstay Tax vs. Guidepath Managed Futures |
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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