Correlation Between Ecofin Sustainable and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both Ecofin Sustainable 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 Ecofin Sustainable and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecofin Sustainable And and MainStay CBRE Global, you can compare the effects of market volatilities on Ecofin Sustainable 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 Ecofin Sustainable with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecofin Sustainable and MainStay CBRE.
Diversification Opportunities for Ecofin Sustainable and MainStay CBRE
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ecofin and MainStay is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ecofin Sustainable And 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 Ecofin Sustainable 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 Ecofin Sustainable And 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 Ecofin Sustainable i.e., Ecofin Sustainable and MainStay CBRE go up and down completely randomly.
Pair Corralation between Ecofin Sustainable and MainStay CBRE
Given the investment horizon of 90 days Ecofin Sustainable And is expected to generate 0.6 times more return on investment than MainStay CBRE. However, Ecofin Sustainable And is 1.68 times less risky than MainStay CBRE. It trades about -0.18 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about -0.22 per unit of risk. If you would invest 1,289 in Ecofin Sustainable And on August 29, 2024 and sell it today you would lose (35.00) from holding Ecofin Sustainable And or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecofin Sustainable And vs. MainStay CBRE Global
Performance |
| Timeline |
| Ecofin Sustainable And |
| MainStay CBRE Global |
Ecofin Sustainable and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecofin Sustainable and MainStay CBRE
The main advantage of trading using opposite Ecofin Sustainable and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecofin Sustainable 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.| Ecofin Sustainable vs. Invesco Advantage MIT | Ecofin Sustainable vs. Invesco Quality Municipal | Ecofin Sustainable vs. Invesco California Value | Ecofin Sustainable vs. DWS Municipal Income |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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