Correlation Between Mainstay Convertible and Blackrock Gbl
Can any of the company-specific risk be diversified away by investing in both Mainstay Convertible and Blackrock Gbl 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 Convertible and Blackrock Gbl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Vertible Fund and Blackrock Gbl Emerging, you can compare the effects of market volatilities on Mainstay Convertible and Blackrock Gbl 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 Convertible with a short position of Blackrock Gbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Convertible and Blackrock Gbl.
Diversification Opportunities for Mainstay Convertible and Blackrock Gbl
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mainstay and Blackrock is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Vertible Fund and Blackrock Gbl Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Gbl Emerging and Mainstay Convertible 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 Vertible Fund are associated (or correlated) with Blackrock Gbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Gbl Emerging has no effect on the direction of Mainstay Convertible i.e., Mainstay Convertible and Blackrock Gbl go up and down completely randomly.
Pair Corralation between Mainstay Convertible and Blackrock Gbl
Assuming the 90 days horizon Mainstay Vertible Fund is expected to generate 0.47 times more return on investment than Blackrock Gbl. However, Mainstay Vertible Fund is 2.13 times less risky than Blackrock Gbl. It trades about 0.16 of its potential returns per unit of risk. Blackrock Gbl Emerging is currently generating about -0.02 per unit of risk. If you would invest 1,823 in Mainstay Vertible Fund on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Mainstay Vertible Fund or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Vertible Fund vs. Blackrock Gbl Emerging
Performance |
| Timeline |
| Mainstay Convertible |
| Blackrock Gbl Emerging |
Mainstay Convertible and Blackrock Gbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Convertible and Blackrock Gbl
The main advantage of trading using opposite Mainstay Convertible and Blackrock Gbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Convertible position performs unexpectedly, Blackrock Gbl 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 Gbl will offset losses from the drop in Blackrock Gbl's long position.| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Tax Free | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Large Cap |
| Blackrock Gbl vs. Blackrock California Municipal | Blackrock Gbl vs. Blackrock Balanced Capital | Blackrock Gbl vs. Blackrock Eurofund Class | Blackrock Gbl vs. Blackrock Funds |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |