Correlation Between Mainstay Moderate and Mainstay Cbre
Can any of the company-specific risk be diversified away by investing in both Mainstay Moderate 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 Moderate 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 Moderate Allocation and Mainstay Cbre Global, you can compare the effects of market volatilities on Mainstay Moderate 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 Moderate with a short position of Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Moderate and Mainstay Cbre.
Diversification Opportunities for Mainstay Moderate and Mainstay Cbre
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Mainstay is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Moderate Allocation 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 Moderate 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 Moderate Allocation 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 Moderate i.e., Mainstay Moderate and Mainstay Cbre go up and down completely randomly.
Pair Corralation between Mainstay Moderate and Mainstay Cbre
Assuming the 90 days horizon Mainstay Moderate is expected to generate 1.61 times less return on investment than Mainstay Cbre. But when comparing it to its historical volatility, Mainstay Moderate Allocation is 1.25 times less risky than Mainstay Cbre. It trades about 0.11 of its potential returns per unit of risk. Mainstay Cbre Global is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,333 in Mainstay Cbre Global on August 30, 2024 and sell it today you would earn a total of 66.00 from holding Mainstay Cbre Global or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Moderate Allocation vs. Mainstay Cbre Global
Performance |
| Timeline |
| Mainstay Moderate |
| Mainstay Cbre Global |
Mainstay Moderate and Mainstay Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Moderate and Mainstay Cbre
The main advantage of trading using opposite Mainstay Moderate and Mainstay Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Moderate 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 Moderate vs. Alphacentric Lifesci Healthcare | Mainstay Moderate vs. Fidelity Advisor Health | Mainstay Moderate vs. Alger Health Sciences | Mainstay Moderate vs. Deutsche Health And |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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