Correlation Between Mainstay Cbre and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Cohen Steers 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 Cohen Steers 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 Cohen Steers Global, you can compare the effects of market volatilities on Mainstay Cbre and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Cohen Steers.
Diversification Opportunities for Mainstay Cbre and Cohen Steers
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Cohen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Cohen Steers Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Global 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Global has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Cohen Steers go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Cohen Steers
Assuming the 90 days horizon Mainstay Cbre Global is expected to generate 1.05 times more return on investment than Cohen Steers. However, Mainstay Cbre is 1.05 times more volatile than Cohen Steers Global. It trades about 0.22 of its potential returns per unit of risk. Cohen Steers Global is currently generating about 0.16 per unit of risk. If you would invest 1,336 in Mainstay Cbre Global on September 4, 2024 and sell it today you would earn a total of 39.00 from holding Mainstay Cbre Global or generate 2.92% 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. Cohen Steers Global
Performance |
| Timeline |
| Mainstay Cbre Global |
| Cohen Steers Global |
Mainstay Cbre and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Cohen Steers
The main advantage of trading using opposite Mainstay Cbre and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Mainstay Cbre vs. Mainstay High Yield | Mainstay Cbre vs. Mainstay Tax Free | Mainstay Cbre vs. Mainstay Income Builder | Mainstay Cbre vs. Mainstay Large Cap |
| Cohen Steers vs. Cohen Steers Global | Cohen Steers vs. Cohen Steers Real | Cohen Steers vs. Cohen Steers International | Cohen Steers vs. Nuveen Global Infrastructure |
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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