Correlation Between Real Estate and Mainstay Government
Can any of the company-specific risk be diversified away by investing in both Real Estate and Mainstay Government 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 Real Estate and Mainstay Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Real Estate Ultrasector and Mainstay Government Fund, you can compare the effects of market volatilities on Real Estate and Mainstay Government 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 Real Estate with a short position of Mainstay Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Estate and Mainstay Government.
Diversification Opportunities for Real Estate and Mainstay Government
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Real and Mainstay is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Ultrasector and Mainstay Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Government and Real Estate 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 Real Estate Ultrasector are associated (or correlated) with Mainstay Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Government has no effect on the direction of Real Estate i.e., Real Estate and Mainstay Government go up and down completely randomly.
Pair Corralation between Real Estate and Mainstay Government
Assuming the 90 days horizon Real Estate Ultrasector is expected to generate 4.33 times more return on investment than Mainstay Government. However, Real Estate is 4.33 times more volatile than Mainstay Government Fund. It trades about 0.03 of its potential returns per unit of risk. Mainstay Government Fund is currently generating about 0.04 per unit of risk. If you would invest 4,030 in Real Estate Ultrasector on September 14, 2024 and sell it today you would earn a total of 422.00 from holding Real Estate Ultrasector or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Real Estate Ultrasector vs. Mainstay Government Fund
Performance |
| Timeline |
| Real Estate Ultrasector |
| Mainstay Government |
Real Estate and Mainstay Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Real Estate and Mainstay Government
The main advantage of trading using opposite Real Estate and Mainstay Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Real Estate position performs unexpectedly, Mainstay Government 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 Government will offset losses from the drop in Mainstay Government's long position.| Real Estate vs. Short Real Estate | Real Estate vs. Short Real Estate | Real Estate vs. Ultrashort Mid Cap Profund | Real Estate vs. Ultrashort Mid Cap Profund |
| Mainstay Government vs. Abr 7525 Volatility | Mainstay Government vs. Falcon Focus Scv | Mainstay Government vs. Rbc Microcap Value | Mainstay Government vs. Rbb Fund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |