Correlation Between Tax-managed and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Tax-managed and Mainstay Large 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 Tax-managed and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tax Managed Mid Small and Mainstay Large Cap, you can compare the effects of market volatilities on Tax-managed and Mainstay Large 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 Tax-managed with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tax-managed and Mainstay Large.
Diversification Opportunities for Tax-managed and Mainstay Large
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tax-managed and Mainstay is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tax Managed Mid Small and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Tax-managed 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 Tax Managed Mid Small are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Tax-managed i.e., Tax-managed and Mainstay Large go up and down completely randomly.
Pair Corralation between Tax-managed and Mainstay Large
Assuming the 90 days horizon Tax Managed Mid Small is expected to generate 0.58 times more return on investment than Mainstay Large. However, Tax Managed Mid Small is 1.74 times less risky than Mainstay Large. It trades about 0.02 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.02 per unit of risk. If you would invest 3,978 in Tax Managed Mid Small on November 28, 2024 and sell it today you would earn a total of 89.00 from holding Tax Managed Mid Small or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tax Managed Mid Small vs. Mainstay Large Cap
Performance |
| Timeline |
| Tax Managed Mid |
| Mainstay Large Cap |
Tax-managed and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tax-managed and Mainstay Large
The main advantage of trading using opposite Tax-managed and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tax-managed position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Tax-managed vs. Ab High Income | Tax-managed vs. Ab High Income | Tax-managed vs. Msift High Yield | Tax-managed vs. Virtus High Yield |
| Mainstay Large vs. Neiman Large Cap | Mainstay Large vs. Profunds Large Cap Growth | Mainstay Large vs. Guidemark Large Cap | Mainstay Large vs. Touchstone Large 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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