Correlation Between Mainstay Epoch and Nuveen Minnesota

Can any of the company-specific risk be diversified away by investing in both Mainstay Epoch and Nuveen Minnesota 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 Mainstay Epoch and Nuveen Minnesota into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mainstay Epoch Small and Nuveen Minnesota Municipal, you can compare the effects of market volatilities on Mainstay Epoch and Nuveen Minnesota 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 Mainstay Epoch with a short position of Nuveen Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Epoch and Nuveen Minnesota.

Diversification Opportunities for Mainstay Epoch and Nuveen Minnesota

0.0

Correlation Coefficient

Mainstay Epoch  Nuveen Minnesota

Pay attention - limited upside

The 3 months correlation between Mainstay and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Epoch Small and Nuveen Minnesota Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Minnesota Mun and Mainstay Epoch 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 Mainstay Epoch Small are associated (or correlated) with Nuveen Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Minnesota Mun has no effect on the direction of Mainstay Epoch i.e., Mainstay Epoch and Nuveen Minnesota go up and down completely randomly.

Pair Corralation between Mainstay Epoch and Nuveen Minnesota

If you would invest  0.00  in Mainstay Epoch Small on October 15, 2024 and sell it today you would earn a total of  0.00  from holding Mainstay Epoch Small or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

Mainstay Epoch Small  vs.  Nuveen Minnesota Municipal

Mainstay Epoch Small

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Mainstay Epoch Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mainstay Epoch is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Minnesota Mun

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen Minnesota Municipal has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nuveen Minnesota is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mainstay Epoch and Nuveen Minnesota

The main advantage of trading using opposite Mainstay Epoch and Nuveen Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Epoch position performs unexpectedly, Nuveen Minnesota 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 Nuveen Minnesota will offset losses from the drop in Nuveen Minnesota's long position.

The idea behind Mainstay Epoch Small and Nuveen Minnesota Municipal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.