Correlation Between Mainstay Tax and Mainstay
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Mainstay 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Tax Advantaged and Mainstay Sp 500, you can compare the effects of market volatilities on Mainstay Tax and Mainstay 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Mainstay.
Diversification Opportunities for Mainstay Tax and Mainstay
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Mainstay is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Advantaged and Mainstay Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Sp 500 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 Advantaged are associated (or correlated) with Mainstay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Sp 500 has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Mainstay go up and down completely randomly.
Pair Corralation between Mainstay Tax and Mainstay
Assuming the 90 days horizon Mainstay Tax is expected to generate 5.8 times less return on investment than Mainstay. But when comparing it to its historical volatility, Mainstay Tax Advantaged is 7.77 times less risky than Mainstay. It trades about 0.18 of its potential returns per unit of risk. Mainstay Sp 500 is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,479 in Mainstay Sp 500 on August 25, 2024 and sell it today you would earn a total of 160.00 from holding Mainstay Sp 500 or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Tax Advantaged vs. Mainstay Sp 500
Performance |
| Timeline |
| Mainstay Tax Advantaged |
| Mainstay Sp 500 |
Mainstay Tax and Mainstay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Mainstay
The main advantage of trading using opposite Mainstay Tax and Mainstay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Mainstay 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 will offset losses from the drop in Mainstay's long position.| Mainstay Tax vs. Alpsalerian Energy Infrastructure | Mainstay Tax vs. Goehring Rozencwajg Resources | Mainstay Tax vs. Calvert Global Energy | Mainstay Tax vs. Tortoise Energy Independence |
| Mainstay vs. Lord Abbett Diversified | Mainstay vs. Semiconductor Ultrasector Profund | Mainstay vs. Qs Growth Fund | Mainstay vs. Delaware Limited Term Diversified |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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