Correlation Between Blackrock Health and Mainstay Pinestone
Can any of the company-specific risk be diversified away by investing in both Blackrock Health and Mainstay Pinestone 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 Blackrock Health and Mainstay Pinestone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Health Sciences and Mainstay Pinestone International, you can compare the effects of market volatilities on Blackrock Health and Mainstay Pinestone 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 Blackrock Health with a short position of Mainstay Pinestone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Health and Mainstay Pinestone.
Diversification Opportunities for Blackrock Health and Mainstay Pinestone
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and Mainstay is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Health Sciences and Mainstay Pinestone Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Pinestone and Blackrock Health 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 Blackrock Health Sciences are associated (or correlated) with Mainstay Pinestone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Pinestone has no effect on the direction of Blackrock Health i.e., Blackrock Health and Mainstay Pinestone go up and down completely randomly.
Pair Corralation between Blackrock Health and Mainstay Pinestone
Assuming the 90 days horizon Blackrock Health Sciences is expected to under-perform the Mainstay Pinestone. In addition to that, Blackrock Health is 1.33 times more volatile than Mainstay Pinestone International. It trades about -0.12 of its total potential returns per unit of risk. Mainstay Pinestone International is currently generating about 0.21 per unit of volatility. If you would invest 1,630 in Mainstay Pinestone International on September 13, 2024 and sell it today you would earn a total of 44.00 from holding Mainstay Pinestone International or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Health Sciences vs. Mainstay Pinestone Internation
Performance |
| Timeline |
| Blackrock Health Sciences |
| Mainstay Pinestone |
Blackrock Health and Mainstay Pinestone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Health and Mainstay Pinestone
The main advantage of trading using opposite Blackrock Health and Mainstay Pinestone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Health position performs unexpectedly, Mainstay Pinestone 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 Pinestone will offset losses from the drop in Mainstay Pinestone's long position.| Blackrock Health vs. Vy T Rowe | Blackrock Health vs. Eaton Vance Atlanta | Blackrock Health vs. Columbia Seligman Global | Blackrock Health vs. Blackrock Health Sciences |
| Mainstay Pinestone vs. Mainstay High Yield | Mainstay Pinestone vs. Mainstay Tax Free | Mainstay Pinestone vs. Mainstay Income Builder | Mainstay Pinestone vs. Mainstay Large Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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