Correlation Between Bank Central and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both Bank Central 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 Bank Central and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and MainStay CBRE Global, you can compare the effects of market volatilities on Bank Central 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 Bank Central with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and MainStay CBRE.
Diversification Opportunities for Bank Central and MainStay CBRE
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and MainStay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia 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 Bank Central 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 Bank Central Asia 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 Bank Central i.e., Bank Central and MainStay CBRE go up and down completely randomly.
Pair Corralation between Bank Central and MainStay CBRE
Assuming the 90 days horizon Bank Central is expected to generate 2.31 times less return on investment than MainStay CBRE. In addition to that, Bank Central is 1.4 times more volatile than MainStay CBRE Global. It trades about 0.03 of its total potential returns per unit of risk. MainStay CBRE Global is currently generating about 0.1 per unit of volatility. If you would invest 1,043 in MainStay CBRE Global on September 1, 2024 and sell it today you would earn a total of 332.00 from holding MainStay CBRE Global or generate 31.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. MainStay CBRE Global
Performance |
| Timeline |
| Bank Central Asia |
| MainStay CBRE Global |
Bank Central and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and MainStay CBRE
The main advantage of trading using opposite Bank Central and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central 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.| Bank Central vs. Piraeus Bank SA | Bank Central vs. Turkiye Garanti Bankasi | Bank Central vs. Delhi Bank Corp | Bank Central vs. Uwharrie Capital Corp |
| MainStay CBRE vs. Ares Dynamic Credit | MainStay CBRE vs. PGIM Short Duration | MainStay CBRE vs. Ecofin Sustainable And | MainStay CBRE vs. Aberdeen Total Dynamic |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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