Correlation Between Mainstay Tax and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Mainstay Winslow 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 Winslow 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 Winslow Large, you can compare the effects of market volatilities on Mainstay Tax and Mainstay Winslow 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 Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Mainstay Winslow.
Diversification Opportunities for Mainstay Tax and Mainstay Winslow
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Mainstay is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Free and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Mainstay Tax and Mainstay Winslow
Assuming the 90 days horizon Mainstay Tax is expected to generate 7.06 times less return on investment than Mainstay Winslow. But when comparing it to its historical volatility, Mainstay Tax Free is 5.02 times less risky than Mainstay Winslow. It trades about 0.05 of its potential returns per unit of risk. Mainstay Winslow Large is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 897.00 in Mainstay Winslow Large on October 20, 2024 and sell it today you would earn a total of 13.00 from holding Mainstay Winslow Large or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Tax Free vs. Mainstay Winslow Large
Performance |
| Timeline |
| Mainstay Tax Free |
| Mainstay Winslow Large |
Mainstay Tax and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Mainstay Winslow
The main advantage of trading using opposite Mainstay Tax and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Mainstay Tax vs. Fidelity Focused High | Mainstay Tax vs. Millerhoward High Income | Mainstay Tax vs. Dunham High Yield | Mainstay Tax vs. Virtus High Yield |
| Mainstay Winslow vs. Queens Road Small | Mainstay Winslow vs. Lsv Small Cap | Mainstay Winslow vs. Amg River Road | Mainstay Winslow vs. Ab Small Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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