Correlation Between Mainstay Map and Blackrock
Can any of the company-specific risk be diversified away by investing in both Mainstay Map and Blackrock 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 Mainstay Map and Blackrock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Map Equity and Blackrock Government Bond, you can compare the effects of market volatilities on Mainstay Map and Blackrock 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 Mainstay Map with a short position of Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Map and Blackrock.
Diversification Opportunities for Mainstay Map and Blackrock
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mainstay and Blackrock is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Map Equity and Blackrock Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Government Bond and Mainstay Map 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 Mainstay Map Equity are associated (or correlated) with Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Government Bond has no effect on the direction of Mainstay Map i.e., Mainstay Map and Blackrock go up and down completely randomly.
Pair Corralation between Mainstay Map and Blackrock
Assuming the 90 days horizon Mainstay Map Equity is expected to generate 2.2 times more return on investment than Blackrock. However, Mainstay Map is 2.2 times more volatile than Blackrock Government Bond. It trades about 0.21 of its potential returns per unit of risk. Blackrock Government Bond is currently generating about 0.11 per unit of risk. If you would invest 2,179 in Mainstay Map Equity on August 31, 2024 and sell it today you would earn a total of 87.00 from holding Mainstay Map Equity or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Map Equity vs. Blackrock Government Bond
Performance |
| Timeline |
| Mainstay Map Equity |
| Blackrock Government Bond |
Mainstay Map and Blackrock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Map and Blackrock
The main advantage of trading using opposite Mainstay Map and Blackrock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Map position performs unexpectedly, Blackrock 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 Blackrock will offset losses from the drop in Blackrock's long position.| Mainstay Map vs. Blackrock Government Bond | Mainstay Map vs. Goldman Sachs Government | Mainstay Map vs. Us Government Securities | Mainstay Map vs. John Hancock Government |
| Blackrock vs. Shelton Emerging Markets | Blackrock vs. Calvert Developed Market | Blackrock vs. Western Asset Diversified | Blackrock vs. Rbc Emerging Markets |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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