Correlation Between Adams Natural and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Adams Natural 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 Adams Natural and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adams Natural Resources and Mainstay Tax Free, you can compare the effects of market volatilities on Adams Natural 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 Adams Natural with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adams Natural and Mainstay Tax.
Diversification Opportunities for Adams Natural and Mainstay Tax
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adams and Mainstay is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Adams Natural Resources 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 Adams Natural 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 Adams Natural Resources 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 Adams Natural i.e., Adams Natural and Mainstay Tax go up and down completely randomly.
Pair Corralation between Adams Natural and Mainstay Tax
Considering the 90-day investment horizon Adams Natural Resources is expected to under-perform the Mainstay Tax. In addition to that, Adams Natural is 5.84 times more volatile than Mainstay Tax Free. It trades about -0.19 of its total potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.44 per unit of volatility. If you would invest 938.00 in Mainstay Tax Free on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Mainstay Tax Free or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adams Natural Resources vs. Mainstay Tax Free
Performance |
| Timeline |
| Adams Natural Resources |
| Mainstay Tax Free |
Adams Natural and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adams Natural and Mainstay Tax
The main advantage of trading using opposite Adams Natural and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adams Natural 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.| Adams Natural vs. Cornerstone Strategic Value | Adams Natural vs. Oxford Lane Capital | Adams Natural vs. Orchid Island Capital | Adams Natural vs. Guggenheim Strategic Opportunities |
| Mainstay Tax vs. Tfa Alphagen Growth | Mainstay Tax vs. Mid Cap Growth | Mainstay Tax vs. Pace Smallmedium Growth | Mainstay Tax vs. Champlain Mid Cap |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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