Correlation Between Mainstay Income and Mainstay Cbre

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Mainstay Income 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 Income 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 Income Builder and Mainstay Cbre Global, you can compare the effects of market volatilities on Mainstay Income 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 Income with a short position of Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Mainstay Cbre.

Diversification Opportunities for Mainstay Income and Mainstay Cbre

MainstayMainstayDiversified AwayMainstayMainstayDiversified Away100%
0.41
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Mainstay and Mainstay is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder 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 Income 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 Income Builder 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 Income i.e., Mainstay Income and Mainstay Cbre go up and down completely randomly.

Pair Corralation between Mainstay Income and Mainstay Cbre

Assuming the 90 days horizon Mainstay Income Builder is expected to generate 0.72 times more return on investment than Mainstay Cbre. However, Mainstay Income Builder is 1.4 times less risky than Mainstay Cbre. It trades about 0.08 of its potential returns per unit of risk. Mainstay Cbre Global is currently generating about 0.02 per unit of risk. If you would invest  1,747  in Mainstay Income Builder on December 4, 2024 and sell it today you would earn a total of  377.00  from holding Mainstay Income Builder or generate 21.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.73%
ValuesDaily Returns

Mainstay Income Builder  vs.  Mainstay Cbre Global

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -6-4-202
JavaScript chart by amCharts 3.21.15MKTRX VCRCX
       Timeline  
Mainstay Income Builder 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Income Builder has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mainstay Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Mainstay Cbre Global 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Mainstay Cbre Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mainstay Cbre is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15JanFebFebMar12.81313.213.413.613.8

Mainstay Income and Mainstay Cbre Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.76-1.3-0.84-0.380.02290.450.911.371.83 0.20.40.60.81.01.2
JavaScript chart by amCharts 3.21.15MKTRX VCRCX
       Returns  

Pair Trading with Mainstay Income and Mainstay Cbre

The main advantage of trading using opposite Mainstay Income and Mainstay Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income 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.
The idea behind Mainstay Income Builder and Mainstay Cbre Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios