Correlation Between Viking Tax and Maine Municipal
Can any of the company-specific risk be diversified away by investing in both Viking Tax and Maine Municipal 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 Viking Tax and Maine Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viking Tax Free Fund and Maine Municipal Fund, you can compare the effects of market volatilities on Viking Tax and Maine Municipal 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 Viking Tax with a short position of Maine Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Tax and Maine Municipal.
Diversification Opportunities for Viking Tax and Maine Municipal
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Viking and Maine is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Viking Tax Free Fund and Maine Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maine Municipal and Viking 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 Viking Tax Free Fund are associated (or correlated) with Maine Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maine Municipal has no effect on the direction of Viking Tax i.e., Viking Tax and Maine Municipal go up and down completely randomly.
Pair Corralation between Viking Tax and Maine Municipal
Assuming the 90 days horizon Viking Tax is expected to generate 1.68 times less return on investment than Maine Municipal. But when comparing it to its historical volatility, Viking Tax Free Fund is 1.17 times less risky than Maine Municipal. It trades about 0.16 of its potential returns per unit of risk. Maine Municipal Fund is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 945.00 in Maine Municipal Fund on September 3, 2024 and sell it today you would earn a total of 14.00 from holding Maine Municipal Fund or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viking Tax Free Fund vs. Maine Municipal Fund
Performance |
| Timeline |
| Viking Tax Free |
| Maine Municipal |
Viking Tax and Maine Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Tax and Maine Municipal
The main advantage of trading using opposite Viking Tax and Maine Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Tax position performs unexpectedly, Maine Municipal 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 Maine Municipal will offset losses from the drop in Maine Municipal's long position.| Viking Tax vs. Artisan Global Unconstrained | Viking Tax vs. Alliancebernstein Global High | Viking Tax vs. Ab Global Real | Viking Tax vs. Ab Global Risk |
| Maine Municipal vs. Calvert High Yield | Maine Municipal vs. Pgim High Yield | Maine Municipal vs. Lord Abbett High | Maine Municipal vs. Prudential High Yield |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |