Correlation Between Stellus Capital and MainStay CBRE

Can any of the company-specific risk be diversified away by investing in both Stellus Capital 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 Stellus Capital and MainStay CBRE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Stellus Capital Investment and MainStay CBRE Global, you can compare the effects of market volatilities on Stellus Capital 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 Stellus Capital with a short position of MainStay CBRE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellus Capital and MainStay CBRE.

Diversification Opportunities for Stellus Capital and MainStay CBRE

0.79

Correlation Coefficient

Stellus Capital  MainStay CBRE

Poor diversification

The 3 months correlation between Stellus and MainStay is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment 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 Stellus Capital 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 Stellus Capital Investment 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 Stellus Capital i.e., Stellus Capital and MainStay CBRE go up and down completely randomly.

Pair Corralation between Stellus Capital and MainStay CBRE

Considering the 90-day investment horizon Stellus Capital Investment is expected to generate 1.12 times more return on investment than MainStay CBRE. However, Stellus Capital is 1.12 times more volatile than MainStay CBRE Global. It trades about 0.2 of its potential returns per unit of risk. MainStay CBRE Global is currently generating about 0.16 per unit of risk. If you would invest  1,241  in Stellus Capital Investment on May 4, 2025 and sell it today you would earn a total of  162.00  from holding Stellus Capital Investment or generate 13.05% return on investment over 90 days.

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

Stellus Capital Investment  vs.  MainStay CBRE Global

Stellus Capital Inve

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Stellus Capital Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Stellus Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

MainStay CBRE Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MainStay CBRE Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent technical and fundamental indicators, MainStay CBRE may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Stellus Capital and MainStay CBRE

The main advantage of trading using opposite Stellus Capital and MainStay CBRE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellus Capital 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 Stellus Capital Investment 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.