Correlation Between Cohen Steers and Mainstay Conservative

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

By analyzing existing cross correlation between Cohen Steers Mlp and Mainstay Conservative Allocation, you can compare the effects of market volatilities on Cohen Steers and Mainstay Conservative 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 Cohen Steers with a short position of Mainstay Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Mainstay Conservative.

Diversification Opportunities for Cohen Steers and Mainstay Conservative

0.71

Correlation Coefficient

Cohen Steers  Mainstay Conservative

Poor diversification

The 3 months correlation between Cohen and Mainstay is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Mlp and Mainstay Conservative Allocati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative and Cohen Steers 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 Cohen Steers Mlp are associated (or correlated) with Mainstay Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative has no effect on the direction of Cohen Steers i.e., Cohen Steers and Mainstay Conservative go up and down completely randomly.

Pair Corralation between Cohen Steers and Mainstay Conservative

Assuming the 90 days horizon Cohen Steers Mlp is expected to generate 2.7 times more return on investment than Mainstay Conservative. However, Cohen Steers is 2.7 times more volatile than Mainstay Conservative Allocation. It trades about 0.27 of its potential returns per unit of risk. Mainstay Conservative Allocation is currently generating about 0.18 per unit of risk. If you would invest  768.00  in Cohen Steers Mlp on May 5, 2025 and sell it today you would earn a total of  122.00  from holding Cohen Steers Mlp or generate 15.89% return on investment over 90 days.

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

Cohen Steers Mlp  vs.  Mainstay Conservative Allocati

Cohen Steers Mlp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cohen Steers Mlp are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Cohen Steers showed solid returns over the last few months and may actually be approaching a breakup point.

Mainstay Conservative

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Conservative Allocation are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mainstay Conservative is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cohen Steers and Mainstay Conservative

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

The idea behind Cohen Steers Mlp and Mainstay Conservative Allocation 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.