Correlation Between Mainstay Cbre and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Mainstay Large 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 Mainstay Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on Mainstay Cbre and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Mainstay Large.
Diversification Opportunities for Mainstay Cbre and Mainstay Large
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mainstay and Mainstay is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Mainstay Large go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Mainstay Large
Assuming the 90 days horizon Mainstay Cbre is expected to generate 2.29 times less return on investment than Mainstay Large. But when comparing it to its historical volatility, Mainstay Cbre Global is 1.58 times less risky than Mainstay Large. It trades about 0.06 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Mainstay Large Cap on August 31, 2024 and sell it today you would earn a total of 434.00 from holding Mainstay Large Cap or generate 43.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cbre Global vs. Mainstay Large Cap
Performance |
| Timeline |
| Mainstay Cbre Global |
| Mainstay Large Cap |
Mainstay Cbre and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Mainstay Large
The main advantage of trading using opposite Mainstay Cbre and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large's long position.| Mainstay Cbre vs. Lazard Global Listed | Mainstay Cbre vs. Lazard Global Listed | Mainstay Cbre vs. HUMANA INC | Mainstay Cbre vs. Aquagold International |
| Mainstay Large vs. Wasatch Global Opportunities | Mainstay Large vs. Artisan Global Unconstrained | Mainstay Large vs. Us Global Leaders | Mainstay Large vs. Federated Global Allocation |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |