Correlation Between Mainstay Cbre and Brookfield Global
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Brookfield Global 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 Mainstay Cbre and Brookfield Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cbre Global and Brookfield Global Listed, you can compare the effects of market volatilities on Mainstay Cbre and Brookfield Global 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 Mainstay Cbre with a short position of Brookfield Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Brookfield Global.
Diversification Opportunities for Mainstay Cbre and Brookfield Global
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Brookfield is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Brookfield Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Global Listed and Mainstay Cbre 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 Mainstay Cbre Global are associated (or correlated) with Brookfield Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Global Listed has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Brookfield Global go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Brookfield Global
Assuming the 90 days horizon Mainstay Cbre is expected to generate 1.26 times less return on investment than Brookfield Global. But when comparing it to its historical volatility, Mainstay Cbre Global is 1.01 times less risky than Brookfield Global. It trades about 0.02 of its potential returns per unit of risk. Brookfield Global Listed is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,221 in Brookfield Global Listed on November 2, 2024 and sell it today you would earn a total of 113.00 from holding Brookfield Global Listed or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cbre Global vs. Brookfield Global Listed
Performance |
| Timeline |
| Mainstay Cbre Global |
| Brookfield Global Listed |
Mainstay Cbre and Brookfield Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Brookfield Global
The main advantage of trading using opposite Mainstay Cbre and Brookfield Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Brookfield Global 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 Brookfield Global will offset losses from the drop in Brookfield Global's long position.| Mainstay Cbre vs. Absolute Convertible Arbitrage | Mainstay Cbre vs. Putnam Convertible Securities | Mainstay Cbre vs. Allianzgi Convertible Income | Mainstay Cbre vs. Virtus Convertible |
| Brookfield Global vs. Virtus Seix Government | Brookfield Global vs. Schwab Government Money | Brookfield Global vs. Great West Government Mortgage | Brookfield Global vs. Wesmark Government Bond |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |