Correlation Between Pimco Diversified and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Pimco Diversified 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 Pimco Diversified and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Diversified Income and Mainstay Tax Free, you can compare the effects of market volatilities on Pimco Diversified 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 Pimco Diversified with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Diversified and Mainstay Tax.
Diversification Opportunities for Pimco Diversified and Mainstay Tax
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pimco and Mainstay is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Diversified Income and Mainstay Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Tax Free and Pimco Diversified 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 Pimco Diversified Income 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 Free has no effect on the direction of Pimco Diversified i.e., Pimco Diversified and Mainstay Tax go up and down completely randomly.
Pair Corralation between Pimco Diversified and Mainstay Tax
Assuming the 90 days horizon Pimco Diversified Income is expected to generate 0.92 times more return on investment than Mainstay Tax. However, Pimco Diversified Income is 1.09 times less risky than Mainstay Tax. It trades about 0.19 of its potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.13 per unit of risk. If you would invest 931.00 in Pimco Diversified Income on September 1, 2024 and sell it today you would earn a total of 47.00 from holding Pimco Diversified Income or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pimco Diversified Income vs. Mainstay Tax Free
Performance |
| Timeline |
| Pimco Diversified Income |
| Mainstay Tax Free |
Pimco Diversified and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Diversified and Mainstay Tax
The main advantage of trading using opposite Pimco Diversified and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Diversified 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.| Pimco Diversified vs. Western Asset Diversified | Pimco Diversified vs. Tiaa Cref Smallmid Cap Equity | Pimco Diversified vs. Tax Managed Mid Small | Pimco Diversified vs. Pgim Jennison Diversified |
| Mainstay Tax vs. Inverse Government Long | Mainstay Tax vs. Prudential Government Income | Mainstay Tax vs. Fidelity Series Government | Mainstay Tax vs. Dreyfus Government Cash |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |