Correlation Between Ares Dynamic and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both Ares Dynamic and MainStay CBRE 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 Ares Dynamic and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ares Dynamic Credit and MainStay CBRE Global, you can compare the effects of market volatilities on Ares Dynamic and MainStay CBRE 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 Ares Dynamic with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Dynamic and MainStay CBRE.
Diversification Opportunities for Ares Dynamic and MainStay CBRE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ares and MainStay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ares Dynamic Credit and MainStay CBRE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MainStay CBRE Global and Ares Dynamic 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 Ares Dynamic Credit are associated (or correlated) with MainStay CBRE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MainStay CBRE Global has no effect on the direction of Ares Dynamic i.e., Ares Dynamic and MainStay CBRE go up and down completely randomly.
Pair Corralation between Ares Dynamic and MainStay CBRE
Given the investment horizon of 90 days Ares Dynamic Credit is expected to generate 0.65 times more return on investment than MainStay CBRE. However, Ares Dynamic Credit is 1.54 times less risky than MainStay CBRE. It trades about 0.13 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about 0.09 per unit of risk. If you would invest 1,302 in Ares Dynamic Credit on August 29, 2024 and sell it today you would earn a total of 232.00 from holding Ares Dynamic Credit or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ares Dynamic Credit vs. MainStay CBRE Global
Performance |
| Timeline |
| Ares Dynamic Credit |
| MainStay CBRE Global |
Ares Dynamic and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ares Dynamic and MainStay CBRE
The main advantage of trading using opposite Ares Dynamic and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ares Dynamic position performs unexpectedly, MainStay CBRE 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 CBRE will offset losses from the drop in MainStay CBRE's long position.| Ares Dynamic vs. Eaton Vance Floating | Ares Dynamic vs. NXG NextGen Infrastructure | Ares Dynamic vs. GAMCO Natural Resources | Ares Dynamic vs. MFS Investment Grade |
| MainStay CBRE vs. Ares Dynamic Credit | MainStay CBRE vs. PGIM Short Duration | MainStay CBRE vs. Ecofin Sustainable And | MainStay CBRE vs. Aberdeen Total Dynamic |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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