Correlation Between CREF Equity and Mayfair Gold

Can any of the company-specific risk be diversified away by investing in both CREF Equity and Mayfair Gold 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 CREF Equity and Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CREF Equity Index and Mayfair Gold Corp, you can compare the effects of market volatilities on CREF Equity and Mayfair Gold 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 CREF Equity with a short position of Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of CREF Equity and Mayfair Gold.

Diversification Opportunities for CREF Equity and Mayfair Gold

0.77

Correlation Coefficient

CREF Equity  Mayfair Gold

Poor diversification

The 3 months correlation between CREF and Mayfair is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CREF Equity Index and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp and CREF Equity 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 CREF Equity Index are associated (or correlated) with Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of CREF Equity i.e., CREF Equity and Mayfair Gold go up and down completely randomly.

Pair Corralation between CREF Equity and Mayfair Gold

Assuming the 90 days trading horizon CREF Equity is expected to generate 2.33 times less return on investment than Mayfair Gold. But when comparing it to its historical volatility, CREF Equity Index is 5.94 times less risky than Mayfair Gold. It trades about 0.23 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  128.00  in Mayfair Gold Corp on July 7, 2025 and sell it today you would earn a total of  21.00  from holding Mayfair Gold Corp or generate 16.41% return on investment over 90 days.

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

CREF Equity Index  vs.  Mayfair Gold Corp

CREF Equity Index

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CREF Equity Index are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, CREF Equity may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Mayfair Gold Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mayfair Gold Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Mayfair Gold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CREF Equity and Mayfair Gold

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

The idea behind CREF Equity Index and Mayfair Gold Corp 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.