Correlation Between Brookfield Real and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both Brookfield Real 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 Brookfield Real and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Real Assets and MainStay CBRE Global, you can compare the effects of market volatilities on Brookfield Real 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 Brookfield Real with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Real and MainStay CBRE.
Diversification Opportunities for Brookfield Real and MainStay CBRE
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookfield and MainStay is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Real Assets 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 Brookfield Real 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 Brookfield Real Assets 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 Brookfield Real i.e., Brookfield Real and MainStay CBRE go up and down completely randomly.
Pair Corralation between Brookfield Real and MainStay CBRE
Allowing for the 90-day total investment horizon Brookfield Real Assets is expected to generate 0.53 times more return on investment than MainStay CBRE. However, Brookfield Real Assets is 1.9 times less risky than MainStay CBRE. It trades about 0.16 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about -0.08 per unit of risk. If you would invest 1,322 in Brookfield Real Assets on August 31, 2024 and sell it today you would earn a total of 26.00 from holding Brookfield Real Assets or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Real Assets vs. MainStay CBRE Global
Performance |
| Timeline |
| Brookfield Real Assets |
| MainStay CBRE Global |
Brookfield Real and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Real and MainStay CBRE
The main advantage of trading using opposite Brookfield Real and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Real 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.| Brookfield Real vs. Pimco Dynamic Income | Brookfield Real vs. Pimco Corporate Income | Brookfield Real vs. Cornerstone Strategic Value | Brookfield Real vs. Cornerstone Strategic Return |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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