Correlation Between Kinetics Global and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Kinetics Global 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 Kinetics Global and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinetics Global Fund and Mainstay Tax Free, you can compare the effects of market volatilities on Kinetics Global 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 Kinetics Global with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinetics Global and Mainstay Tax.
Diversification Opportunities for Kinetics Global and Mainstay Tax
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kinetics and Mainstay is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kinetics Global Fund 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 Kinetics Global 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 Kinetics Global Fund 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 Kinetics Global i.e., Kinetics Global and Mainstay Tax go up and down completely randomly.
Pair Corralation between Kinetics Global and Mainstay Tax
Assuming the 90 days horizon Kinetics Global Fund is expected to under-perform the Mainstay Tax. In addition to that, Kinetics Global is 4.47 times more volatile than Mainstay Tax Free. It trades about -0.01 of its total potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.13 per unit of volatility. If you would invest 927.00 in Mainstay Tax Free on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Mainstay Tax Free or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinetics Global Fund vs. Mainstay Tax Free
Performance |
| Timeline |
| Kinetics Global |
| Mainstay Tax Free |
Kinetics Global and Mainstay Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinetics Global and Mainstay Tax
The main advantage of trading using opposite Kinetics Global and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinetics Global 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.| Kinetics Global vs. Kinetics Internet Fund | Kinetics Global vs. Kinetics Paradigm Fund | Kinetics Global vs. Jacob Internet Fund | Kinetics Global vs. Kinetics Small Cap |
| Mainstay Tax vs. Gmo High Yield | Mainstay Tax vs. Artisan High Income | Mainstay Tax vs. Ab Bond Inflation | Mainstay Tax vs. Rbc Bluebay Emerging |
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 CEOs Directory module to screen CEOs from public companies around the world.
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