Correlation Between Mainstay Tax and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Mainstay Mackay 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 Mackay 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 Mackay New, you can compare the effects of market volatilities on Mainstay Tax and Mainstay Mackay 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 Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Mainstay Mackay.
Diversification Opportunities for Mainstay Tax and Mainstay Mackay
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Free and Mainstay Mackay New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay New 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 Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay New has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Mainstay Tax and Mainstay Mackay
Assuming the 90 days horizon Mainstay Tax is expected to generate 1.26 times less return on investment than Mainstay Mackay. But when comparing it to its historical volatility, Mainstay Tax Free is 1.13 times less risky than Mainstay Mackay. It trades about 0.07 of its potential returns per unit of risk. Mainstay Mackay New is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 885.00 in Mainstay Mackay New on August 30, 2024 and sell it today you would earn a total of 90.00 from holding Mainstay Mackay New or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Tax Free vs. Mainstay Mackay New
Performance |
| Timeline |
| Mainstay Tax Free |
| Mainstay Mackay New |
Mainstay Tax and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Mainstay Mackay
The main advantage of trading using opposite Mainstay Tax and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Mainstay Mackay 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 Mackay will offset losses from the drop in Mainstay Mackay's long position.| Mainstay Tax vs. Blackrock Conservative Prprdptfinstttnl | Mainstay Tax vs. Huber Capital Diversified | Mainstay Tax vs. Pioneer Diversified High | Mainstay Tax vs. Pimco Diversified Income |
| Mainstay Mackay vs. T Rowe Price | Mainstay Mackay vs. California Bond Fund | Mainstay Mackay vs. Ab Global Bond | Mainstay Mackay vs. Vanguard High Yield Tax Exempt |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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