Correlation Between Mainstay Large and Mainstay Cbre
Can any of the company-specific risk be diversified away by investing in both Mainstay Large 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 Large 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 Large Cap and Mainstay Cbre Global, you can compare the effects of market volatilities on Mainstay Large 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 Large with a short position of Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Mainstay Cbre.
Diversification Opportunities for Mainstay Large and Mainstay Cbre
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Mainstay is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap 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 Large 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 Large Cap 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 Large i.e., Mainstay Large and Mainstay Cbre go up and down completely randomly.
Pair Corralation between Mainstay Large and Mainstay Cbre
Assuming the 90 days horizon Mainstay Large is expected to generate 1.21 times less return on investment than Mainstay Cbre. In addition to that, Mainstay Large is 1.97 times more volatile than Mainstay Cbre Global. It trades about 0.1 of its total potential returns per unit of risk. Mainstay Cbre Global is currently generating about 0.24 per unit of volatility. If you would invest 1,356 in Mainstay Cbre Global on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Mainstay Cbre Global or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Mainstay Cbre Global
Performance |
| Timeline |
| Mainstay Large Cap |
| Mainstay Cbre Global |
Mainstay Large and Mainstay Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Mainstay Cbre
The main advantage of trading using opposite Mainstay Large and Mainstay Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large 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.| Mainstay Large vs. Dreyfusstandish Global Fixed | Mainstay Large vs. Wasatch Global Opportunities | Mainstay Large vs. Artisan Global Unconstrained | Mainstay Large vs. Us Global Investors |
| Mainstay Cbre vs. Eic Value Fund | Mainstay Cbre vs. Barings Active Short | Mainstay Cbre vs. Nasdaq 100 Index Fund | Mainstay Cbre vs. Ab Value Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |