Correlation Between Voya Cbre and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Voya Cbre and Mainstay High 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 Voya Cbre and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Cbre Global and Mainstay High Yield, you can compare the effects of market volatilities on Voya Cbre and Mainstay High 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 Voya Cbre with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Cbre and Mainstay High.
Diversification Opportunities for Voya Cbre and Mainstay High
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Mainstay is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voya Cbre Global and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Voya 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 Voya Cbre Global are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Voya Cbre i.e., Voya Cbre and Mainstay High go up and down completely randomly.
Pair Corralation between Voya Cbre and Mainstay High
Assuming the 90 days horizon Voya Cbre Global is expected to generate 3.53 times more return on investment than Mainstay High. However, Voya Cbre is 3.53 times more volatile than Mainstay High Yield. It trades about 0.22 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.15 per unit of risk. If you would invest 1,344 in Voya Cbre Global on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Voya Cbre Global or generate 3.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Cbre Global vs. Mainstay High Yield
Performance |
| Timeline |
| Voya Cbre Global |
| Mainstay High Yield |
Voya Cbre and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Cbre and Mainstay High
The main advantage of trading using opposite Voya Cbre and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Cbre position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Voya Cbre vs. Mainstay High Yield | Voya Cbre vs. Mainstay Tax Free | Voya Cbre vs. Mainstay Income Builder | Voya Cbre vs. Mainstay Large Cap |
| Mainstay High vs. Scharf Global Opportunity | Mainstay High vs. Fabxx | Mainstay High vs. Leggmason Partners Institutional | Mainstay High vs. Falcon Focus Scv |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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