Correlation Between Blrc Sgy and Mainstay Cushing
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Mainstay Cushing 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 Blrc Sgy and Mainstay Cushing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Mainstay Cushing Mlp, you can compare the effects of market volatilities on Blrc Sgy and Mainstay Cushing 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 Blrc Sgy with a short position of Mainstay Cushing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Mainstay Cushing.
Diversification Opportunities for Blrc Sgy and Mainstay Cushing
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blrc and Mainstay is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Mainstay Cushing Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Cushing Mlp and Blrc Sgy 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 Blrc Sgy Mnp are associated (or correlated) with Mainstay Cushing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Cushing Mlp has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Mainstay Cushing go up and down completely randomly.
Pair Corralation between Blrc Sgy and Mainstay Cushing
Assuming the 90 days horizon Blrc Sgy is expected to generate 6.27 times less return on investment than Mainstay Cushing. But when comparing it to its historical volatility, Blrc Sgy Mnp is 3.62 times less risky than Mainstay Cushing. It trades about 0.07 of its potential returns per unit of risk. Mainstay Cushing Mlp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 717.00 in Mainstay Cushing Mlp on September 4, 2024 and sell it today you would earn a total of 510.00 from holding Mainstay Cushing Mlp or generate 71.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Mainstay Cushing Mlp
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Mainstay Cushing Mlp |
Blrc Sgy and Mainstay Cushing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Mainstay Cushing
The main advantage of trading using opposite Blrc Sgy and Mainstay Cushing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy position performs unexpectedly, Mainstay Cushing 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 Cushing will offset losses from the drop in Mainstay Cushing's long position.| Blrc Sgy vs. Blackrock California Municipal | Blrc Sgy vs. Blackrock Balanced Capital | Blrc Sgy vs. Blackrock Funds | Blrc Sgy vs. Blackrock Emerging Markets |
| Mainstay Cushing vs. Federated Mdt Large | Mainstay Cushing vs. Rational Strategic Allocation | Mainstay Cushing vs. Old Westbury Large | Mainstay Cushing vs. T Rowe Price |
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 Stocks Directory module to find actively traded stocks across global markets.
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