Correlation Between Small Company and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Small Company and Mainstay Tax 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 Small Company and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Pany Growth and Mainstay Tax Advantaged, you can compare the effects of market volatilities on Small Company and Mainstay Tax 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 Small Company with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Company and Mainstay Tax.
Diversification Opportunities for Small Company and Mainstay Tax
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Small and Mainstay is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Small Pany Growth and Mainstay Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Tax Advantaged and Small Company 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 Small Pany Growth are associated (or correlated) with Mainstay Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Tax Advantaged has no effect on the direction of Small Company i.e., Small Company and Mainstay Tax go up and down completely randomly.
Pair Corralation between Small Company and Mainstay Tax
Assuming the 90 days horizon Small Pany Growth is expected to generate 20.75 times more return on investment than Mainstay Tax. However, Small Company is 20.75 times more volatile than Mainstay Tax Advantaged. It trades about 0.66 of its potential returns per unit of risk. Mainstay Tax Advantaged is currently generating about 0.16 per unit of risk. If you would invest 1,285 in Small Pany Growth on September 4, 2024 and sell it today you would earn a total of 384.00 from holding Small Pany Growth or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Small Pany Growth vs. Mainstay Tax Advantaged
Performance |
| Timeline |
| Small Pany Growth |
| Mainstay Tax Advantaged |
Small Company and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Company and Mainstay Tax
The main advantage of trading using opposite Small Company and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Company position performs unexpectedly, Mainstay Tax 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 Tax will offset losses from the drop in Mainstay Tax's long position.| Small Company vs. Mid Cap Growth | Small Company vs. Growth Portfolio Class | Small Company vs. Morgan Stanley Multi | Small Company vs. Emerging Markets Portfolio |
| Mainstay Tax vs. Morgan Stanley Emerging | Mainstay Tax vs. Oklahoma College Savings | Mainstay Tax vs. Kinetics Market Opportunities | Mainstay Tax vs. Barings 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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