Correlation Between Mainstay Tax and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Mainstay Epoch 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 Tax and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Tax Free and Mainstay Epoch Global, you can compare the effects of market volatilities on Mainstay Tax and Mainstay Epoch 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 Tax with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Mainstay Epoch.
Diversification Opportunities for Mainstay Tax and Mainstay Epoch
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and Mainstay is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Free and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global and Mainstay Tax 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 Tax Free are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Mainstay Tax and Mainstay Epoch
Assuming the 90 days horizon Mainstay Tax is expected to generate 3.93 times less return on investment than Mainstay Epoch. But when comparing it to its historical volatility, Mainstay Tax Free is 2.54 times less risky than Mainstay Epoch. It trades about 0.07 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,915 in Mainstay Epoch Global on August 31, 2024 and sell it today you would earn a total of 532.00 from holding Mainstay Epoch Global or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Tax Free vs. Mainstay Epoch Global
Performance |
| Timeline |
| Mainstay Tax Free |
| Mainstay Epoch Global |
Mainstay Tax and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Mainstay Epoch
The main advantage of trading using opposite Mainstay Tax and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Mainstay Epoch 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 Epoch will offset losses from the drop in Mainstay Epoch's long position.| Mainstay Tax vs. Vanguard Long Term Tax Exempt | Mainstay Tax vs. Vanguard High Yield Tax Exempt | Mainstay Tax vs. Vanguard High Yield Tax Exempt | Mainstay Tax vs. Strategic Advisers Municipal |
| Mainstay Epoch vs. Mid Cap Value Profund | Mainstay Epoch vs. Ultramid Cap Profund Ultramid Cap | Mainstay Epoch vs. Fpa Queens Road | Mainstay Epoch vs. Queens Road Small |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |