Correlation Between Blackrock Managed and Payden High
Can any of the company-specific risk be diversified away by investing in both Blackrock Managed and Payden 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 Managed and Payden High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Managed Income and Payden High Income, you can compare the effects of market volatilities on Blackrock Managed and Payden 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 Managed with a short position of Payden High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Managed and Payden High.
Diversification Opportunities for Blackrock Managed and Payden High
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackrock and Payden is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Managed Income and Payden High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden High Income and Blackrock Managed 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 Managed Income are associated (or correlated) with Payden High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden High Income has no effect on the direction of Blackrock Managed i.e., Blackrock Managed and Payden High go up and down completely randomly.
Pair Corralation between Blackrock Managed and Payden High
Assuming the 90 days horizon Blackrock Managed Income is expected to generate 1.48 times more return on investment than Payden High. However, Blackrock Managed is 1.48 times more volatile than Payden High Income. It trades about 0.16 of its potential returns per unit of risk. Payden High Income is currently generating about 0.09 per unit of risk. If you would invest 943.00 in Blackrock Managed Income on September 14, 2024 and sell it today you would earn a total of 8.00 from holding Blackrock Managed Income or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Managed Income vs. Payden High Income
Performance |
| Timeline |
| Blackrock Managed Income |
| Payden High Income |
Blackrock Managed and Payden High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Managed and Payden High
The main advantage of trading using opposite Blackrock Managed and Payden High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Managed position performs unexpectedly, Payden 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 Payden High will offset losses from the drop in Payden High's long position.| Blackrock Managed vs. Payden High Income | Blackrock Managed vs. Gmo High Yield | Blackrock Managed vs. Virtus High Yield | Blackrock Managed vs. Janus High Yield Fund |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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