Correlation Between MainStay CBRE and Ares Dynamic
Can any of the company-specific risk be diversified away by investing in both MainStay CBRE and Ares Dynamic 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 Ares Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MainStay CBRE Global and Ares Dynamic Credit, you can compare the effects of market volatilities on MainStay CBRE and Ares Dynamic 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 Ares Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MainStay CBRE and Ares Dynamic.
Diversification Opportunities for MainStay CBRE and Ares Dynamic
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MainStay and Ares is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding MainStay CBRE Global and Ares Dynamic Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares Dynamic Credit 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 Global are associated (or correlated) with Ares Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Dynamic Credit has no effect on the direction of MainStay CBRE i.e., MainStay CBRE and Ares Dynamic go up and down completely randomly.
Pair Corralation between MainStay CBRE and Ares Dynamic
Given the investment horizon of 90 days MainStay CBRE is expected to generate 4.84 times less return on investment than Ares Dynamic. In addition to that, MainStay CBRE is 1.49 times more volatile than Ares Dynamic Credit. It trades about 0.02 of its total potential returns per unit of risk. Ares Dynamic Credit is currently generating about 0.11 per unit of volatility. If you would invest 1,020 in Ares Dynamic Credit on October 20, 2024 and sell it today you would earn a total of 499.00 from holding Ares Dynamic Credit or generate 48.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MainStay CBRE Global vs. Ares Dynamic Credit
Performance |
| Timeline |
| MainStay CBRE Global |
| Ares Dynamic Credit |
MainStay CBRE and Ares Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MainStay CBRE and Ares Dynamic
The main advantage of trading using opposite MainStay CBRE and Ares Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MainStay CBRE position performs unexpectedly, Ares Dynamic 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 Ares Dynamic will offset losses from the drop in Ares Dynamic's long position.| MainStay CBRE vs. Ares Dynamic Credit | MainStay CBRE vs. PGIM Short Duration | MainStay CBRE vs. Ecofin Sustainable And | MainStay CBRE vs. Aberdeen Total Dynamic |
| Ares Dynamic vs. Eaton Vance Floating | Ares Dynamic vs. NXG NextGen Infrastructure | Ares Dynamic vs. GAMCO Natural Resources | Ares Dynamic vs. MFS Investment Grade |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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