Correlation Between Mainstay High and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Mainstay High 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 High 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 High Yield and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Mainstay High 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 High with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Oklahoma Municipal.
Diversification Opportunities for Mainstay High and Oklahoma Municipal
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Oklahoma is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield 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 High 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 High Yield 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 High i.e., Mainstay High and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Mainstay High and Oklahoma Municipal
Assuming the 90 days horizon Mainstay High Yield is expected to under-perform the Oklahoma Municipal. In addition to that, Mainstay High is 1.15 times more volatile than Oklahoma Municipal Fund. It trades about -0.08 of its total potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.02 per unit of volatility. If you would invest 1,055 in Oklahoma Municipal Fund on September 19, 2024 and sell it today you would earn a total of 1.00 from holding Oklahoma Municipal Fund or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Mainstay High Yield |
| Oklahoma Municipal |
Mainstay High and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Oklahoma Municipal
The main advantage of trading using opposite Mainstay High and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High 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 High vs. Ab Select Longshort | Mainstay High vs. Barings Active Short | Mainstay High vs. Old Westbury Short Term | Mainstay High vs. Calvert Short Duration |
| Oklahoma Municipal vs. Western Asset Municipal | Oklahoma Municipal vs. Versatile Bond Portfolio | Oklahoma Municipal vs. Ab Global Bond | Oklahoma Municipal vs. Dws Government Money |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| 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 | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |