Correlation Between MFS Investment and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both MFS Investment 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 MFS Investment and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFS Investment Grade and MainStay CBRE Global, you can compare the effects of market volatilities on MFS Investment 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 MFS Investment with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFS Investment and MainStay CBRE.
Diversification Opportunities for MFS Investment and MainStay CBRE
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MFS and MainStay is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MFS Investment Grade 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 MFS Investment 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 MFS Investment Grade 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 MFS Investment i.e., MFS Investment and MainStay CBRE go up and down completely randomly.
Pair Corralation between MFS Investment and MainStay CBRE
Considering the 90-day investment horizon MFS Investment is expected to generate 1.03 times less return on investment than MainStay CBRE. But when comparing it to its historical volatility, MFS Investment Grade is 2.18 times less risky than MainStay CBRE. It trades about 0.18 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,244 in MainStay CBRE Global on September 2, 2024 and sell it today you would earn a total of 131.00 from holding MainStay CBRE Global or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFS Investment Grade vs. MainStay CBRE Global
Performance |
| Timeline |
| MFS Investment Grade |
| MainStay CBRE Global |
MFS Investment and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFS Investment and MainStay CBRE
The main advantage of trading using opposite MFS Investment and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFS Investment 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.| MFS Investment vs. Invesco High Income | MFS Investment vs. Eaton Vance National | MFS Investment vs. Nuveen California Select | MFS Investment vs. Federated Premier Municipal |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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