Correlation Between Mainstay Cbre and Df Dent

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

Diversification Opportunities for Mainstay Cbre and Df Dent

0.0

Correlation Coefficient

Mainstay Cbre  Df Dent

Pay attention - limited upside

The 3 months correlation between Mainstay and DFDSX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Df Dent Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Df Dent Small 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 Df Dent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Df Dent Small has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Df Dent go up and down completely randomly.

Pair Corralation between Mainstay Cbre and Df Dent

If you would invest  1,320  in Mainstay Cbre Global on December 5, 2024 and sell it today you would earn a total of  34.00  from holding Mainstay Cbre Global or generate 2.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mainstay Cbre Global  vs.  Df Dent Small

Mainstay Cbre Global

Risk-Adjusted Performance

Very Weak

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

Df Dent Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Df Dent Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Df Dent 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 Df Dent

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

The idea behind Mainstay Cbre Global and Df Dent Small 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.