Correlation Between Mainstay Pinestone and Mainstay Cbre
Can any of the company-specific risk be diversified away by investing in both Mainstay Pinestone 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 Mainstay Pinestone and Mainstay Cbre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Pinestone Global and Mainstay Cbre Global, you can compare the effects of market volatilities on Mainstay Pinestone 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 Mainstay Pinestone with a short position of Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Pinestone and Mainstay Cbre.
Diversification Opportunities for Mainstay Pinestone and Mainstay Cbre
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Pinestone Global 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 Mainstay Pinestone 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 Pinestone Global 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 Mainstay Pinestone i.e., Mainstay Pinestone and Mainstay Cbre go up and down completely randomly.
Pair Corralation between Mainstay Pinestone and Mainstay Cbre
Assuming the 90 days horizon Mainstay Pinestone Global is expected to under-perform the Mainstay Cbre. In addition to that, Mainstay Pinestone is 1.3 times more volatile than Mainstay Cbre Global. It trades about -0.21 of its total potential returns per unit of risk. Mainstay Cbre Global is currently generating about 0.2 per unit of volatility. If you would invest 1,312 in Mainstay Cbre Global on December 4, 2024 and sell it today you would earn a total of 24.00 from holding Mainstay Cbre Global or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Pinestone Global vs. Mainstay Cbre Global
Performance |
| Timeline |
| Mainstay Pinestone Global |
| Mainstay Cbre Global |
Mainstay Pinestone and Mainstay Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Pinestone and Mainstay Cbre
The main advantage of trading using opposite Mainstay Pinestone and Mainstay Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Pinestone 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.| Mainstay Pinestone vs. T Rowe Price | ||
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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