Correlation Between Empire State and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Empire State and Mainstay Map 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 Empire State and Mainstay Map into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Mainstay Map Equity, you can compare the effects of market volatilities on Empire State and Mainstay Map 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 Empire State with a short position of Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Mainstay Map.
Diversification Opportunities for Empire State and Mainstay Map
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Empire and Mainstay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity and Empire State 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 Empire State Realty are associated (or correlated) with Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Empire State i.e., Empire State and Mainstay Map go up and down completely randomly.
Pair Corralation between Empire State and Mainstay Map
Given the investment horizon of 90 days Empire State is expected to generate 1.43 times less return on investment than Mainstay Map. In addition to that, Empire State is 1.6 times more volatile than Mainstay Map Equity. It trades about 0.13 of its total potential returns per unit of risk. Mainstay Map Equity is currently generating about 0.3 per unit of volatility. If you would invest 3,126 in Mainstay Map Equity on September 1, 2024 and sell it today you would earn a total of 166.00 from holding Mainstay Map Equity or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Empire State Realty vs. Mainstay Map Equity
Performance |
| Timeline |
| Empire State Realty |
| Mainstay Map Equity |
Empire State and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Mainstay Map
The main advantage of trading using opposite Empire State and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Mainstay Map 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 Map will offset losses from the drop in Mainstay Map's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Mainstay Map vs. Pace High Yield | Mainstay Map vs. Alpine High Yield | Mainstay Map vs. Federated Institutional High | Mainstay Map vs. Mesirow Financial High |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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