Correlation Between Tax-managed and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Tax-managed 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 Tax-managed and Mainstay Tax 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 Tax Advantaged, you can compare the effects of market volatilities on Tax-managed 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 Tax-managed with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tax-managed and Mainstay Tax.
Diversification Opportunities for Tax-managed and Mainstay Tax
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tax-managed and Mainstay is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Tax Managed Mid Small and Mainstay Tax Advantaged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Tax Advantaged 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 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 Advantaged has no effect on the direction of Tax-managed i.e., Tax-managed and Mainstay Tax go up and down completely randomly.
Pair Corralation between Tax-managed and Mainstay Tax
Assuming the 90 days horizon Tax Managed Mid Small is expected to generate 9.12 times more return on investment than Mainstay Tax. However, Tax-managed is 9.12 times more volatile than Mainstay Tax Advantaged. It trades about 0.07 of its potential returns per unit of risk. Mainstay Tax Advantaged is currently generating about 0.06 per unit of risk. If you would invest 4,200 in Tax Managed Mid Small on November 4, 2024 and sell it today you would earn a total of 49.00 from holding Tax Managed Mid Small or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tax Managed Mid Small vs. Mainstay Tax Advantaged
Performance |
| Timeline |
| Tax Managed Mid |
| Mainstay Tax Advantaged |
Tax-managed and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tax-managed and Mainstay Tax
The main advantage of trading using opposite Tax-managed and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tax-managed 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.| Tax-managed vs. Eagle Mlp Strategy | Tax-managed vs. Nasdaq 100 2x Strategy | Tax-managed vs. Old Westbury Short Term | Tax-managed vs. Federated Emerging Market |
| Mainstay Tax vs. Tortoise Energy Independence | Mainstay Tax vs. Invesco Energy Fund | Mainstay Tax vs. Icon Natural Resources | Mainstay Tax vs. Franklin Natural Resources |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |