Correlation Between Mainstay Mackay and Mainstay Cbre
Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay 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 Mackay 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 Mackay Unconstrained and Mainstay Cbre Real, you can compare the effects of market volatilities on Mainstay Mackay 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 Mackay with a short position of Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Mainstay Cbre.
Diversification Opportunities for Mainstay Mackay and Mainstay Cbre
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay Unconstrained and Mainstay Cbre Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cbre Real and Mainstay Mackay 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 Mackay Unconstrained 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 Real has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Mainstay Cbre go up and down completely randomly.
Pair Corralation between Mainstay Mackay and Mainstay Cbre
Assuming the 90 days horizon Mainstay Mackay is expected to generate 1.08 times less return on investment than Mainstay Cbre. But when comparing it to its historical volatility, Mainstay Mackay Unconstrained is 4.16 times less risky than Mainstay Cbre. It trades about 0.13 of its potential returns per unit of risk. Mainstay Cbre Real is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 728.00 in Mainstay Cbre Real on December 4, 2024 and sell it today you would earn a total of 121.00 from holding Mainstay Cbre Real or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Mainstay Mackay Unconstrained vs. Mainstay Cbre Real
Performance |
| Timeline |
| Mainstay Mackay Unco |
| Mainstay Cbre Real |
Mainstay Mackay and Mainstay Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Mackay and Mainstay Cbre
The main advantage of trading using opposite Mainstay Mackay and Mainstay Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay 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 Mackay vs. Texton Property | Mainstay Mackay vs. Real Estate Ultrasector | Mainstay Mackay vs. Rreef Property Trust | Mainstay Mackay vs. Vanguard Reit Index |
| Mainstay Cbre vs. Intermediate Bond Fund | Mainstay Cbre vs. Intermediate Term Bond Fund | Mainstay Cbre vs. Rbc Impact Bond | Mainstay Cbre vs. Jhvit Core Bond |
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 CEOs Directory module to screen CEOs from public companies around the world.
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