Correlation Between Prudential Real and Mainstay Cbre

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

By analyzing existing cross correlation between Prudential Real Estate and Mainstay Cbre Global, you can compare the effects of market volatilities on Prudential Real and Mainstay 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 Prudential Real with a short position of Mainstay Cbre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Real and Mainstay Cbre.

Diversification Opportunities for Prudential Real and Mainstay Cbre

0.2

Correlation Coefficient

Prudential Real  Mainstay Cbre

Modest diversification

The 3 months correlation between Prudential and Mainstay is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Real Estate and Mainstay Cbre Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cbre Global and Prudential Real 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 Prudential Real Estate are associated (or correlated) with Mainstay Cbre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cbre Global has no effect on the direction of Prudential Real i.e., Prudential Real and Mainstay Cbre go up and down completely randomly.

Pair Corralation between Prudential Real and Mainstay Cbre

Assuming the 90 days horizon Prudential Real is expected to generate 1.11 times less return on investment than Mainstay Cbre. In addition to that, Prudential Real is 1.6 times more volatile than Mainstay Cbre Global. It trades about 0.06 of its total potential returns per unit of risk. Mainstay Cbre Global is currently generating about 0.1 per unit of volatility. If you would invest  1,420  in Mainstay Cbre Global on June 30, 2025 and sell it today you would earn a total of  48.00  from holding Mainstay Cbre Global or generate 3.38% return on investment over 90 days.

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

Prudential Real Estate  vs.  Mainstay Cbre Global

Prudential Real Estate

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Prudential Real Estate are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Prudential Real is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mainstay Cbre Global

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Cbre Global are ranked lower than 7 (%) 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.

Pair Trading with Prudential Real and Mainstay Cbre

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

The idea behind Prudential Real Estate and Mainstay 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..