Correlation Between Mainstay Income and Voya Cbre
Can any of the company-specific risk be diversified away by investing in both Mainstay Income and Voya 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 Voya 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 Voya Cbre Global, you can compare the effects of market volatilities on Mainstay Income and Voya 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 Voya Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Income and Voya Cbre.
Diversification Opportunities for Mainstay Income and Voya Cbre
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Income Builder and Voya Cbre Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya 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 Voya Cbre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Cbre Global has no effect on the direction of Mainstay Income i.e., Mainstay Income and Voya Cbre go up and down completely randomly.
Pair Corralation between Mainstay Income and Voya Cbre
Assuming the 90 days horizon Mainstay Income is expected to generate 1.12 times less return on investment than Voya Cbre. But when comparing it to its historical volatility, Mainstay Income Builder is 1.31 times less risky than Voya Cbre. It trades about 0.14 of its potential returns per unit of risk. Voya Cbre Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,373 in Voya Cbre Global on August 28, 2024 and sell it today you would earn a total of 22.00 from holding Voya Cbre Global or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Income Builder vs. Voya Cbre Global
Performance |
| Timeline |
| Mainstay Income Builder |
| Voya Cbre Global |
Mainstay Income and Voya Cbre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Income and Voya Cbre
The main advantage of trading using opposite Mainstay Income and Voya Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Income position performs unexpectedly, Voya 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 Voya Cbre will offset losses from the drop in Voya Cbre's long position.| Mainstay Income vs. Mainstay High Yield | Mainstay Income vs. Mainstay Tax Free | Mainstay Income vs. Mainstay Income Builder | Mainstay Income vs. Mainstay Large Cap |
| Voya Cbre vs. John Hancock Enduring | Voya Cbre vs. Fidelity Infrastructure | Voya Cbre vs. Invesco Global Infrastructure | Voya Cbre vs. Mainstay Income Builder |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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