Correlation Between Blackstone Gso and MFS High
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and MFS High 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 Blackstone Gso and MFS High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Gso Long and MFS High Income, you can compare the effects of market volatilities on Blackstone Gso and MFS High 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 Blackstone Gso with a short position of MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and MFS High.
Diversification Opportunities for Blackstone Gso and MFS High
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackstone and MFS is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Long and MFS High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Income and Blackstone Gso 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 Blackstone Gso Long are associated (or correlated) with MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Income has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and MFS High go up and down completely randomly.
Pair Corralation between Blackstone Gso and MFS High
Considering the 90-day investment horizon Blackstone Gso Long is expected to generate 1.0 times more return on investment than MFS High. However, Blackstone Gso is 1.0 times more volatile than MFS High Income. It trades about 0.2 of its potential returns per unit of risk. MFS High Income is currently generating about 0.12 per unit of risk. If you would invest 1,253 in Blackstone Gso Long on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Blackstone Gso Long or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Gso Long vs. MFS High Income
Performance |
| Timeline |
| Blackstone Gso Long |
| MFS High Income |
Blackstone Gso and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and MFS High
The main advantage of trading using opposite Blackstone Gso and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, MFS High 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 MFS High will offset losses from the drop in MFS High's long position.| Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackrock International Growth | Blackstone Gso vs. BlackRock Municipal Income |
| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Invesco High Income | MFS High vs. Blackrock Muniholdings Ny |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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