Correlation Between Mainstay Large and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Oklahoma Municipal 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 Large and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Mainstay Large and Oklahoma Municipal 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 Large with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Oklahoma Municipal.
Diversification Opportunities for Mainstay Large and Oklahoma Municipal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Oklahoma is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Mainstay Large 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 Large Cap are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Mainstay Large i.e., Mainstay Large and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Mainstay Large and Oklahoma Municipal
Assuming the 90 days horizon Mainstay Large Cap is expected to generate 8.16 times more return on investment than Oklahoma Municipal. However, Mainstay Large is 8.16 times more volatile than Oklahoma Municipal Fund. It trades about 0.01 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.04 per unit of risk. If you would invest 450.00 in Mainstay Large Cap on November 27, 2024 and sell it today you would earn a total of 4.00 from holding Mainstay Large Cap or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mainstay Large Cap vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Mainstay Large Cap |
| Oklahoma Municipal |
Mainstay Large and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Oklahoma Municipal
The main advantage of trading using opposite Mainstay Large and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Mainstay Large vs. Ffcdax | Mainstay Large vs. Wabmsx | Mainstay Large vs. Fxybjx | Mainstay Large vs. Flakqx |
| Oklahoma Municipal vs. Rbc Short Duration | Oklahoma Municipal vs. Calvert Short Duration | Oklahoma Municipal vs. Transam Short Term Bond | Oklahoma Municipal vs. Ashmore Emerging Markets |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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