Correlation Between Blackrock and High Yield
Can any of the company-specific risk be diversified away by investing in both Blackrock and High Yield 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 High Yield 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 High Yield Fund, you can compare the effects of market volatilities on Blackrock and High Yield 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 High Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock and High Yield.
Diversification Opportunities for Blackrock and High Yield
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and High is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Hi Yld and High Yield Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Fund 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 High Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Fund has no effect on the direction of Blackrock i.e., Blackrock and High Yield go up and down completely randomly.
Pair Corralation between Blackrock and High Yield
Assuming the 90 days horizon Blackrock Hi Yld is expected to generate 0.74 times more return on investment than High Yield. However, Blackrock Hi Yld is 1.35 times less risky than High Yield. It trades about 0.31 of its potential returns per unit of risk. High Yield Fund is currently generating about 0.17 per unit of risk. If you would invest 714.00 in Blackrock Hi Yld on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Blackrock Hi Yld or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Hi Yld vs. High Yield Fund
Performance |
| Timeline |
| Blackrock Hi Yld |
| High Yield Fund |
Blackrock and High Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock and High Yield
The main advantage of trading using opposite Blackrock and High Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock position performs unexpectedly, High Yield 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 High Yield will offset losses from the drop in High Yield's long position.| Blackrock vs. Multisector Bond Sma | Blackrock vs. Versatile Bond Portfolio | Blackrock vs. Artisan High Income | Blackrock vs. Legg Mason Partners |
| High Yield vs. Vanguard High Yield Corporate | High Yield vs. Vanguard High Yield Porate | High Yield vs. Blackrock Hi Yld | High Yield vs. Blackrock High Yield |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |