Correlation Between Mainstay Tax and Ppm High
Can any of the company-specific risk be diversified away by investing in both Mainstay Tax and Ppm High 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 Ppm High 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 Ppm High Yield, you can compare the effects of market volatilities on Mainstay Tax and Ppm High 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 Ppm High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Tax and Ppm High.
Diversification Opportunities for Mainstay Tax and Ppm High
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and PPM is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Tax Free and Ppm High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ppm High Yield 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 Ppm High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ppm High Yield has no effect on the direction of Mainstay Tax i.e., Mainstay Tax and Ppm High go up and down completely randomly.
Pair Corralation between Mainstay Tax and Ppm High
Assuming the 90 days horizon Mainstay Tax Free is expected to under-perform the Ppm High. In addition to that, Mainstay Tax is 2.19 times more volatile than Ppm High Yield. It trades about -0.05 of its total potential returns per unit of risk. Ppm High Yield is currently generating about 0.04 per unit of volatility. If you would invest 898.00 in Ppm High Yield on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Ppm High Yield or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Mainstay Tax Free vs. Ppm High Yield
Performance |
| Timeline |
| Mainstay Tax Free |
| Ppm High Yield |
Mainstay Tax and Ppm High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Tax and Ppm High
The main advantage of trading using opposite Mainstay Tax and Ppm High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Tax position performs unexpectedly, Ppm High 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 Ppm High will offset losses from the drop in Ppm High's long position.| Mainstay Tax vs. Morningstar Aggressive Growth | Mainstay Tax vs. Goldman Sachs High | Mainstay Tax vs. Lgm Risk Managed | Mainstay Tax vs. Copeland Risk Managed |
| Ppm High vs. Lord Abbett Government | Ppm High vs. Aig Government Money | Ppm High vs. Us Government Securities | Ppm High vs. John Hancock Government |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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