Correlation Between Blackrock Gbl and Mainstay Convertible
Can any of the company-specific risk be diversified away by investing in both Blackrock Gbl and Mainstay Convertible 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 Gbl and Mainstay Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Gbl Emerging and Mainstay Vertible Fund, you can compare the effects of market volatilities on Blackrock Gbl and Mainstay Convertible 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 Gbl with a short position of Mainstay Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Gbl and Mainstay Convertible.
Diversification Opportunities for Blackrock Gbl and Mainstay Convertible
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackrock and Mainstay is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Gbl Emerging and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Convertible and Blackrock Gbl 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 Gbl Emerging are associated (or correlated) with Mainstay Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Convertible has no effect on the direction of Blackrock Gbl i.e., Blackrock Gbl and Mainstay Convertible go up and down completely randomly.
Pair Corralation between Blackrock Gbl and Mainstay Convertible
Assuming the 90 days horizon Blackrock Gbl Emerging is expected to under-perform the Mainstay Convertible. In addition to that, Blackrock Gbl is 2.13 times more volatile than Mainstay Vertible Fund. It trades about -0.02 of its total potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.16 per unit of volatility. 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 |
Blackrock Gbl Emerging vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Blackrock Gbl Emerging |
| Mainstay Convertible |
Blackrock Gbl and Mainstay Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Gbl and Mainstay Convertible
The main advantage of trading using opposite Blackrock Gbl and Mainstay Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Gbl position performs unexpectedly, Mainstay Convertible 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 Convertible will offset losses from the drop in Mainstay Convertible's long position.| Blackrock Gbl vs. Blackrock California Municipal | Blackrock Gbl vs. Blackrock Balanced Capital | Blackrock Gbl vs. Blackrock Eurofund Class | Blackrock Gbl vs. Blackrock Funds |
| Mainstay Convertible vs. Mainstay High Yield | Mainstay Convertible vs. Mainstay Tax Free | Mainstay Convertible vs. Mainstay Income Builder | Mainstay Convertible vs. Mainstay Large Cap |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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