Correlation Between Cref Money and Mainstay Floating
Can any of the company-specific risk be diversified away by investing in both Cref Money and Mainstay Floating 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 Cref Money and Mainstay Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Mainstay Floating Rate, you can compare the effects of market volatilities on Cref Money and Mainstay Floating 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 Cref Money with a short position of Mainstay Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Mainstay Floating.
Diversification Opportunities for Cref Money and Mainstay Floating
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cref and Mainstay is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Mainstay Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Floating Rate and Cref Money 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 Cref Money Market are associated (or correlated) with Mainstay Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Floating Rate has no effect on the direction of Cref Money i.e., Cref Money and Mainstay Floating go up and down completely randomly.
Pair Corralation between Cref Money and Mainstay Floating
Assuming the 90 days trading horizon Cref Money is expected to generate 2.11 times less return on investment than Mainstay Floating. But when comparing it to its historical volatility, Cref Money Market is 7.21 times less risky than Mainstay Floating. It trades about 0.97 of its potential returns per unit of risk. Mainstay Floating Rate is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 847.00 in Mainstay Floating Rate on November 3, 2024 and sell it today you would earn a total of 42.00 from holding Mainstay Floating Rate or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Mainstay Floating Rate
Performance |
| Timeline |
| Cref Money Market |
| Mainstay Floating Rate |
Cref Money and Mainstay Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Mainstay Floating
The main advantage of trading using opposite Cref Money and Mainstay Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Mainstay Floating 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 Floating will offset losses from the drop in Mainstay Floating's long position.| Cref Money vs. Short Real Estate | Cref Money vs. Nexpoint Real Estate | Cref Money vs. Jhancock Real Estate | Cref Money vs. Tiaa Cref Real Estate |
| Mainstay Floating vs. Gabelli Convertible And | Mainstay Floating vs. Lord Abbett Convertible | Mainstay Floating vs. Absolute Convertible Arbitrage | Mainstay Floating vs. Rationalpier 88 Convertible |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |