Correlation Between Mainstay Tax and Mainstay Equity
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Mainstay Equity 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 Equity 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 Equity Etf, you can compare the effects of market volatilities on Mainstay Tax and Mainstay Equity 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 Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Mainstay Equity.
Diversification Opportunities for Mainstay Tax and Mainstay Equity
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Free and Mainstay Equity Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Equity Etf 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 Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Equity Etf has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Mainstay Equity go up and down completely randomly.
Pair Corralation between Mainstay Tax and Mainstay Equity
Assuming the 90 days horizon Mainstay Tax Free is expected to generate 0.24 times more return on investment than Mainstay Equity. However, Mainstay Tax Free is 4.13 times less risky than Mainstay Equity. It trades about 0.0 of its potential returns per unit of risk. Mainstay Equity Etf is currently generating about -0.01 per unit of risk. If you would invest 925.00 in Mainstay Tax Free on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Mainstay Tax Free or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Tax Free vs. Mainstay Equity Etf
Performance |
| Timeline |
| Mainstay Tax Free |
| Mainstay Equity Etf |
Mainstay Tax and Mainstay Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Mainstay Equity
The main advantage of trading using opposite Mainstay Tax and Mainstay Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Mainstay Equity 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 Equity will offset losses from the drop in Mainstay Equity's long position.| Mainstay Tax vs. Tax Managed Mid Small | Mainstay Tax vs. L Abbett Fundamental | Mainstay Tax vs. Rbc Funds Trust | Mainstay Tax vs. Alternative Asset Allocation |
| Mainstay Equity vs. Multisector Bond Sma | Mainstay Equity vs. Gmo High Yield | Mainstay Equity vs. Ambrus Core Bond | Mainstay Equity vs. Versatile Bond Portfolio |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |