Correlation Between MainStay CBRE and Central Securities
Can any of the company-specific risk be diversified away by investing in both MainStay CBRE and Central Securities 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 Central Securities 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 Central Securities, you can compare the effects of market volatilities on MainStay CBRE and Central Securities 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 Central Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of MainStay CBRE and Central Securities.
Diversification Opportunities for MainStay CBRE and Central Securities
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MainStay and Central is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding MainStay CBRE Global and Central Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Securities 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 Central Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Securities has no effect on the direction of MainStay CBRE i.e., MainStay CBRE and Central Securities go up and down completely randomly.
Pair Corralation between MainStay CBRE and Central Securities
Given the investment horizon of 90 days MainStay CBRE is expected to generate 1.32 times less return on investment than Central Securities. In addition to that, MainStay CBRE is 1.46 times more volatile than Central Securities. It trades about 0.09 of its total potential returns per unit of risk. Central Securities is currently generating about 0.17 per unit of volatility. If you would invest 4,092 in Central Securities on September 2, 2024 and sell it today you would earn a total of 602.00 from holding Central Securities or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MainStay CBRE Global vs. Central Securities
Performance |
| Timeline |
| MainStay CBRE Global |
| Central Securities |
MainStay CBRE and Central Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MainStay CBRE and Central Securities
The main advantage of trading using opposite MainStay CBRE and Central Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MainStay CBRE position performs unexpectedly, Central Securities 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 Central Securities will offset losses from the drop in Central Securities' 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 |
| Central Securities vs. Visa Class A | Central Securities vs. Diamond Hill Investment | Central Securities vs. Distoken Acquisition | Central Securities vs. Associated Capital Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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