Correlation Between Mainstay Convertible and Tiaa Cref

Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Tiaa Cref 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 Convertible and Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mainstay Vertible Fund and Tiaa Cref Emerging Markets, you can compare the effects of market volatilities on Mainstay Convertible and Tiaa Cref 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 Convertible with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Tiaa Cref.

Diversification Opportunities for Mainstay Convertible and Tiaa Cref

0.32

Correlation Coefficient

Mainstay Convertible  Tiaa Cref

Weak diversification

The 3 months correlation between Mainstay and Tiaa is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Tiaa Cref Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Emerging and Mainstay Convertible 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 Vertible Fund are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Emerging has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Tiaa Cref go up and down completely randomly.

Pair Corralation between Mainstay Convertible and Tiaa Cref

Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.54 times more return on investment than Tiaa Cref. However, Mainstay Vertible Fund is 1.85 times less risky than Tiaa Cref. It trades about 0.05 of its potential returns per unit of risk. Tiaa Cref Emerging Markets is currently generating about 0.02 per unit of risk. If you would invest  1,685  in Mainstay Vertible Fund on October 10, 2024 and sell it today you would earn a total of  191.00  from holding Mainstay Vertible Fund or generate 11.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mainstay Vertible Fund  vs.  Tiaa Cref Emerging Markets

Mainstay Convertible

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mainstay Vertible Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Mainstay Convertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Tiaa Cref Emerging

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tiaa Cref Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Mainstay Convertible and Tiaa Cref

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

The idea behind Mainstay Vertible Fund and Tiaa Cref Emerging Markets 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 CEOs Directory module to screen CEOs from public companies around the world.