Correlation Between MainStay CBRE and Pimco High
Can any of the company-specific risk be diversified away by investing in both MainStay CBRE and Pimco High 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 High 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 High Income, you can compare the effects of market volatilities on MainStay CBRE and Pimco High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of MainStay CBRE and Pimco High.
Diversification Opportunities for MainStay CBRE and Pimco High
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MainStay and Pimco is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MainStay CBRE Global and Pimco High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco High 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco High Income has no effect on the direction of MainStay CBRE i.e., MainStay CBRE and Pimco High go up and down completely randomly.
Pair Corralation between MainStay CBRE and Pimco High
Given the investment horizon of 90 days MainStay CBRE is expected to generate 1.56 times less return on investment than Pimco High. In addition to that, MainStay CBRE is 1.34 times more volatile than Pimco High Income. It trades about 0.03 of its total potential returns per unit of risk. Pimco High Income is currently generating about 0.07 per unit of volatility. If you would invest 386.00 in Pimco High Income on August 28, 2024 and sell it today you would earn a total of 115.00 from holding Pimco High Income or generate 29.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MainStay CBRE Global vs. Pimco High Income
Performance |
| Timeline |
| MainStay CBRE Global |
| Pimco High Income |
MainStay CBRE and Pimco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MainStay CBRE and Pimco High
The main advantage of trading using opposite MainStay CBRE and Pimco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MainStay CBRE position performs unexpectedly, Pimco High 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 High will offset losses from the drop in Pimco High'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 High vs. Pcm Fund | Pimco High vs. Pimco Income Strategy | Pimco High vs. Pimco Corporate Income | Pimco High vs. PIMCO Access 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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