Correlation Between Western AssetClaymore and MainStay CBRE
Can any of the company-specific risk be diversified away by investing in both Western AssetClaymore 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 Western AssetClaymore and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western AssetClaymore Infl and MainStay CBRE Global, you can compare the effects of market volatilities on Western AssetClaymore 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 Western AssetClaymore with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western AssetClaymore and MainStay CBRE.
Diversification Opportunities for Western AssetClaymore and MainStay CBRE
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and MainStay is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Western AssetClaymore Infl 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 Western AssetClaymore 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 Western AssetClaymore Infl 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 Western AssetClaymore i.e., Western AssetClaymore and MainStay CBRE go up and down completely randomly.
Pair Corralation between Western AssetClaymore and MainStay CBRE
Considering the 90-day investment horizon Western AssetClaymore Infl is expected to generate 0.38 times more return on investment than MainStay CBRE. However, Western AssetClaymore Infl is 2.63 times less risky than MainStay CBRE. It trades about 0.07 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about -0.02 per unit of risk. If you would invest 823.00 in Western AssetClaymore Infl on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Western AssetClaymore Infl or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western AssetClaymore Infl vs. MainStay CBRE Global
Performance |
| Timeline |
| Western AssetClaymore |
| MainStay CBRE Global |
Western AssetClaymore and MainStay CBRE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western AssetClaymore and MainStay CBRE
The main advantage of trading using opposite Western AssetClaymore and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western AssetClaymore 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.| Western AssetClaymore vs. MainStay CBRE Global | Western AssetClaymore vs. Cohen Steers Closed | Western AssetClaymore vs. Pgim Global High | Western AssetClaymore vs. The Gabelli Multimedia |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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