Correlation Between Mainstay Tax and Mainstay Short
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Mainstay Short 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 Short 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 Short Duration, you can compare the effects of market volatilities on Mainstay Tax and Mainstay Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Mainstay Short.
Diversification Opportunities for Mainstay Tax and Mainstay Short
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mainstay and Mainstay is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Free and Mainstay Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Short Duration 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Short Duration has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Mainstay Short go up and down completely randomly.
Pair Corralation between Mainstay Tax and Mainstay Short
Assuming the 90 days horizon Mainstay Tax is expected to generate 1.9 times less return on investment than Mainstay Short. In addition to that, Mainstay Tax is 1.7 times more volatile than Mainstay Short Duration. It trades about 0.07 of its total potential returns per unit of risk. Mainstay Short Duration is currently generating about 0.23 per unit of volatility. If you would invest 822.00 in Mainstay Short Duration on September 12, 2024 and sell it today you would earn a total of 137.00 from holding Mainstay Short Duration or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Tax Free vs. Mainstay Short Duration
Performance |
| Timeline |
| Mainstay Tax Free |
| Mainstay Short Duration |
Mainstay Tax and Mainstay Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Mainstay Short
The main advantage of trading using opposite Mainstay Tax and Mainstay Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Mainstay Short 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 Short will offset losses from the drop in Mainstay Short's long position.| Mainstay Tax vs. Guggenheim Risk Managed | Mainstay Tax vs. Deutsche Real Estate | Mainstay Tax vs. Columbia Real Estate | Mainstay Tax vs. Forum Real Estate |
| Mainstay Short vs. Nuveen Real Estate | Mainstay Short vs. Commonwealth Real Estate | Mainstay Short vs. Franklin Real Estate | Mainstay Short vs. Short Real Estate |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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