Correlation Between Blackrock and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Blackrock and Mainstay 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 Blackrock and Mainstay High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Hi Yld and Mainstay High Yield, you can compare the effects of market volatilities on Blackrock and Mainstay 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 Blackrock with a short position of Mainstay High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock and Mainstay High.
Diversification Opportunities for Blackrock and Mainstay High
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and Mainstay is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Hi Yld and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield and Blackrock 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 Hi Yld are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Blackrock i.e., Blackrock and Mainstay High go up and down completely randomly.
Pair Corralation between Blackrock and Mainstay High
Assuming the 90 days horizon Blackrock Hi Yld is expected to generate 0.99 times more return on investment than Mainstay High. However, Blackrock Hi Yld is 1.01 times less risky than Mainstay High. It trades about 0.26 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.21 per unit of risk. If you would invest 714.00 in Blackrock Hi Yld on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Blackrock Hi Yld or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Hi Yld vs. Mainstay High Yield
Performance |
| Timeline |
| Blackrock Hi Yld |
| Mainstay High Yield |
Blackrock and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock and Mainstay High
The main advantage of trading using opposite Blackrock and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock position performs unexpectedly, Mainstay 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 Mainstay High will offset losses from the drop in Mainstay High's long position.| Blackrock vs. Prudential High Yield | Blackrock vs. HUMANA INC | Blackrock vs. Aquagold International | Blackrock vs. Barloworld Ltd ADR |
| Mainstay High vs. Virtus High Yield | Mainstay High vs. Dunham High Yield | Mainstay High vs. Pimco High Yield | Mainstay High vs. Tiaa Cref High Yield Fund |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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