Correlation Between MainStay CBRE and Pimco Dynamic
Can any of the company-specific risk be diversified away by investing in both MainStay CBRE and Pimco 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 Pimco 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 Pimco Dynamic Income, you can compare the effects of market volatilities on MainStay CBRE and Pimco 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 Pimco Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of MainStay CBRE and Pimco Dynamic.
Diversification Opportunities for MainStay CBRE and Pimco Dynamic
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MainStay and Pimco is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MainStay CBRE Global and Pimco Dynamic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Dynamic Income 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 Pimco Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Dynamic Income has no effect on the direction of MainStay CBRE i.e., MainStay CBRE and Pimco Dynamic go up and down completely randomly.
Pair Corralation between MainStay CBRE and Pimco Dynamic
Given the investment horizon of 90 days MainStay CBRE Global is expected to generate 1.43 times more return on investment than Pimco Dynamic. However, MainStay CBRE is 1.43 times more volatile than Pimco Dynamic Income. It trades about 0.08 of its potential returns per unit of risk. Pimco Dynamic Income is currently generating about 0.08 per unit of risk. If you would invest 1,227 in MainStay CBRE Global on August 28, 2024 and sell it today you would earn a total of 124.00 from holding MainStay CBRE Global or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MainStay CBRE Global vs. Pimco Dynamic Income
Performance |
| Timeline |
| MainStay CBRE Global |
| Pimco Dynamic Income |
MainStay CBRE and Pimco Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MainStay CBRE and Pimco Dynamic
The main advantage of trading using opposite MainStay CBRE and Pimco Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MainStay CBRE position performs unexpectedly, Pimco 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 Pimco Dynamic will offset losses from the drop in Pimco 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 |
| Pimco Dynamic vs. Pimco Corporate Income | Pimco Dynamic vs. Guggenheim Strategic Opportunities | Pimco Dynamic vs. Pimco Dynamic Income | Pimco Dynamic vs. Pimco High Income |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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