Correlation Between Mainstay Income and Tiaa-cref Real
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Tiaa-cref Real 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 Tiaa-cref Real 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 Tiaa Cref Real Estate, you can compare the effects of market volatilities on Mainstay Income and Tiaa-cref Real 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 Tiaa-cref Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Tiaa-cref Real.
Diversification Opportunities for Mainstay Income and Tiaa-cref Real
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mainstay and Tiaa-cref is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Tiaa Cref Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Real 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 Tiaa-cref Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Real has no effect on the direction of Mainstay Income i.e., Mainstay Income and Tiaa-cref Real go up and down completely randomly.
Pair Corralation between Mainstay Income and Tiaa-cref Real
Assuming the 90 days horizon Mainstay Income Builder is expected to generate 0.52 times more return on investment than Tiaa-cref Real. However, Mainstay Income Builder is 1.93 times less risky than Tiaa-cref Real. It trades about 0.13 of its potential returns per unit of risk. Tiaa Cref Real Estate is currently generating about 0.03 per unit of risk. If you would invest 2,051 in Mainstay Income Builder on October 23, 2024 and sell it today you would earn a total of 25.00 from holding Mainstay Income Builder or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Tiaa Cref Real Estate
Performance |
| Timeline |
| Mainstay Income Builder |
| Tiaa Cref Real |
Mainstay Income and Tiaa-cref Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Tiaa-cref Real
The main advantage of trading using opposite Mainstay Income and Tiaa-cref Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Tiaa-cref Real 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 Tiaa-cref Real will offset losses from the drop in Tiaa-cref Real's long position.| Mainstay Income vs. Aig Government Money | Mainstay Income vs. Short Term Government Fund | Mainstay Income vs. Franklin Adjustable Government | Mainstay Income vs. Voya Government Money |
| Tiaa-cref Real vs. Tiaa Cref Inflation Link | Tiaa-cref Real vs. Asg Managed Futures | Tiaa-cref Real vs. Short Duration Inflation | Tiaa-cref Real vs. Ab Bond Inflation |
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 Positions Ratings module to 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.
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