Correlation Between Mainstay Cbre and Voya Cbre

Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Voya 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 Mainstay Cbre and Voya Cbre 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 Voya Cbre Global, you can compare the effects of market volatilities on Mainstay Cbre and Voya 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 Mainstay Cbre with a short position of Voya Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Voya Cbre.

Diversification Opportunities for Mainstay Cbre and Voya Cbre

1.0

Correlation Coefficient

Mainstay Cbre  Voya Cbre

No risk reduction

The 3 months correlation between Mainstay and Voya is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Voya Cbre Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Cbre 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 Voya Cbre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Cbre Global has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Voya Cbre go up and down completely randomly.

Pair Corralation between Mainstay Cbre and Voya Cbre

Assuming the 90 days horizon Mainstay Cbre is expected to generate 1.05 times less return on investment than Voya Cbre. In addition to that, Mainstay Cbre is 1.0 times more volatile than Voya Cbre Global. It trades about 0.14 of its total potential returns per unit of risk. Voya Cbre Global is currently generating about 0.14 per unit of volatility. If you would invest  1,335  in Voya Cbre Global on September 3, 2024 and sell it today you would earn a total of  69.00  from holding Voya Cbre Global or generate 5.17% 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.  Voya Cbre Global

Mainstay Cbre Global

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Cbre Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Mainstay Cbre is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Voya Cbre Global

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Cbre Global are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Voya Cbre is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mainstay Cbre and Voya Cbre

The main advantage of trading using opposite Mainstay Cbre and Voya Cbre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Voya 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 Voya Cbre will offset losses from the drop in Voya Cbre's long position.

The idea behind Mainstay Cbre Global and Voya Cbre Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.