Correlation Between Blrc Sgy and Payden Core
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Payden Core 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 Payden Core 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 Payden Core Bond, you can compare the effects of market volatilities on Blrc Sgy and Payden Core 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 Payden Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Payden Core.
Diversification Opportunities for Blrc Sgy and Payden Core
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blrc and Payden is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Payden Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Core Bond 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 Payden Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Core Bond has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Payden Core go up and down completely randomly.
Pair Corralation between Blrc Sgy and Payden Core
Assuming the 90 days horizon Blrc Sgy is expected to generate 1.37 times less return on investment than Payden Core. But when comparing it to its historical volatility, Blrc Sgy Mnp is 1.42 times less risky than Payden Core. It trades about 0.06 of its potential returns per unit of risk. Payden Core Bond is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 831.00 in Payden Core Bond on November 27, 2024 and sell it today you would earn a total of 90.00 from holding Payden Core Bond or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Payden Core Bond
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Payden Core Bond |
Blrc Sgy and Payden Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Payden Core
The main advantage of trading using opposite Blrc Sgy and Payden Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy position performs unexpectedly, Payden Core 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 Core will offset losses from the drop in Payden Core's long position.| Blrc Sgy vs. Intal High Relative | Blrc Sgy vs. T Rowe Price | Blrc Sgy vs. Ft 7934 Corporate | Blrc Sgy vs. Alternative Asset Allocation |
| Payden Core vs. Financial Industries Fund | Payden Core vs. Vanguard Financials Index | Payden Core vs. Rmb Mendon Financial | Payden Core vs. Fidelity Advisor Financial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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