Correlation Between Mainstay Cbre and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Massmutual Premier 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 Cbre and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cbre Real and Massmutual Premier Diversified, you can compare the effects of market volatilities on Mainstay Cbre and Massmutual Premier 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 Cbre with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Massmutual Premier.
Diversification Opportunities for Mainstay Cbre and Massmutual Premier
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Massmutual is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Real and Massmutual Premier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Mainstay Cbre 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 Cbre Real are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Massmutual Premier go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Massmutual Premier
Assuming the 90 days horizon Mainstay Cbre Real is expected to generate 2.96 times more return on investment than Massmutual Premier. However, Mainstay Cbre is 2.96 times more volatile than Massmutual Premier Diversified. It trades about 0.05 of its potential returns per unit of risk. Massmutual Premier Diversified is currently generating about 0.06 per unit of risk. If you would invest 740.00 in Mainstay Cbre Real on September 2, 2024 and sell it today you would earn a total of 149.00 from holding Mainstay Cbre Real or generate 20.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cbre Real vs. Massmutual Premier Diversified
Performance |
| Timeline |
| Mainstay Cbre Real |
| Massmutual Premier |
Mainstay Cbre and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Massmutual Premier
The main advantage of trading using opposite Mainstay Cbre and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier's long position.| Mainstay Cbre vs. Ultra Short Fixed Income | Mainstay Cbre vs. Federated Ultrashort Bond | Mainstay Cbre vs. Blrc Sgy Mnp | Mainstay Cbre vs. Thrivent Income Fund |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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