Correlation Between Maine Municipal and Viking Tax
Can any of the company-specific risk be diversified away by investing in both Maine Municipal and Viking 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 Maine Municipal and Viking Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maine Municipal Fund and Viking Tax Free Fund, you can compare the effects of market volatilities on Maine Municipal and Viking 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 Maine Municipal with a short position of Viking Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maine Municipal and Viking Tax.
Diversification Opportunities for Maine Municipal and Viking Tax
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Maine and Viking is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Maine Municipal Fund and Viking Tax Free Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Tax Free and Maine 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 Maine Municipal Fund are associated (or correlated) with Viking Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Tax Free has no effect on the direction of Maine Municipal i.e., Maine Municipal and Viking Tax go up and down completely randomly.
Pair Corralation between Maine Municipal and Viking Tax
Assuming the 90 days horizon Maine Municipal Fund is expected to generate 0.71 times more return on investment than Viking Tax. However, Maine Municipal Fund is 1.41 times less risky than Viking Tax. It trades about 0.52 of its potential returns per unit of risk. Viking Tax Free Fund is currently generating about 0.13 per unit of risk. If you would invest 945.00 in Maine Municipal Fund on September 14, 2024 and sell it today you would earn a total of 15.00 from holding Maine Municipal Fund or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maine Municipal Fund vs. Viking Tax Free Fund
Performance |
| Timeline |
| Maine Municipal |
| Viking Tax Free |
Maine Municipal and Viking Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maine Municipal and Viking Tax
The main advantage of trading using opposite Maine Municipal and Viking Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maine Municipal position performs unexpectedly, Viking 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 Viking Tax will offset losses from the drop in Viking Tax's long position.| Maine Municipal vs. Viking Tax Free Fund | Maine Municipal vs. Integrity Dividend Summit | Maine Municipal vs. Integrity Dividend Summit | Maine Municipal vs. Nebraska Municipal Fund |
| Viking Tax vs. Integrity Dividend Summit | Viking Tax vs. Integrity Dividend Summit | Viking Tax vs. Nebraska Municipal Fund | Viking Tax vs. Williston Basinmid North America |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |