Correlation Between Dodge International and Mainstay Tax
Can any of the company-specific risk be diversified away by investing in both Dodge International 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 Dodge International and Mainstay Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge International Stock and Mainstay Tax Free, you can compare the effects of market volatilities on Dodge International 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 Dodge International with a short position of Mainstay Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge International and Mainstay Tax.
Diversification Opportunities for Dodge International and Mainstay Tax
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dodge and Mainstay is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock 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 Dodge International 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 Dodge International Stock 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 Dodge International i.e., Dodge International and Mainstay Tax go up and down completely randomly.
Pair Corralation between Dodge International and Mainstay Tax
Assuming the 90 days horizon Dodge International Stock is expected to generate 3.78 times more return on investment than Mainstay Tax. However, Dodge International is 3.78 times more volatile than Mainstay Tax Free. It trades about 0.22 of its potential returns per unit of risk. Mainstay Tax Free is currently generating about 0.05 per unit of risk. If you would invest 4,993 in Dodge International Stock on December 28, 2024 and sell it today you would earn a total of 589.00 from holding Dodge International Stock or generate 11.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 60.0% |
Values | Daily Returns |
Dodge International Stock vs. Mainstay Tax Free
Performance |
Timeline |
Dodge International Stock |
Mainstay Tax Free |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Dodge International and Mainstay Tax Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dodge International and Mainstay Tax
The main advantage of trading using opposite Dodge International and Mainstay Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge International 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.Dodge International vs. Dodge Stock Fund | Dodge International vs. Dodge Income Fund | Dodge International vs. Dodge Balanced Fund | Dodge International vs. The Fairholme Fund |
Mainstay Tax vs. Ab All Market | Mainstay Tax vs. Segall Bryant Hamill | Mainstay Tax vs. Rbc Emerging Markets | Mainstay Tax vs. Pace International 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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