Correlation Between Mainstay Cbre and Prudential Jennison
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Prudential Jennison 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 Prudential Jennison 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 Prudential Jennison Global, you can compare the effects of market volatilities on Mainstay Cbre and Prudential Jennison 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 Prudential Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Prudential Jennison.
Diversification Opportunities for Mainstay Cbre and Prudential Jennison
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mainstay and Prudential is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Prudential Jennison Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Jennison 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 Prudential Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Jennison has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Prudential Jennison go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Prudential Jennison
Assuming the 90 days horizon Mainstay Cbre is expected to generate 1.03 times less return on investment than Prudential Jennison. But when comparing it to its historical volatility, Mainstay Cbre Global is 1.03 times less risky than Prudential Jennison. It trades about 0.14 of its potential returns per unit of risk. Prudential Jennison Global is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,738 in Prudential Jennison Global on May 22, 2025 and sell it today you would earn a total of 81.00 from holding Prudential Jennison Global or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cbre Global vs. Prudential Jennison Global
Performance |
| Timeline |
| Mainstay Cbre Global |
| Prudential Jennison |
Mainstay Cbre and Prudential Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Prudential Jennison
The main advantage of trading using opposite Mainstay Cbre and Prudential Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Prudential Jennison 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 Prudential Jennison will offset losses from the drop in Prudential Jennison's long position.| Mainstay Cbre vs. Ab Bond Inflation | Mainstay Cbre vs. California Municipal Portfolio | Mainstay Cbre vs. Payden Emerging Markets | Mainstay Cbre vs. Ab Bond Inflation |
| Prudential Jennison vs. California Municipal Portfolio | Prudential Jennison vs. John Hancock Municipal | Prudential Jennison vs. Pace Municipal Fixed | Prudential Jennison vs. Dunham Porategovernment Bond |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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