Correlation Between Mainstay High and Blackrock Core
Can any of the company-specific risk be diversified away by investing in both Mainstay High and Blackrock 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 Mainstay High and Blackrock Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay High Yield and Blackrock Core Bond, you can compare the effects of market volatilities on Mainstay High and Blackrock 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 Mainstay High with a short position of Blackrock Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay High and Blackrock Core.
Diversification Opportunities for Mainstay High and Blackrock Core
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mainstay and Blackrock is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay High Yield and Blackrock Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Core Bond and Mainstay High 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 High Yield are associated (or correlated) with Blackrock Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Core Bond has no effect on the direction of Mainstay High i.e., Mainstay High and Blackrock Core go up and down completely randomly.
Pair Corralation between Mainstay High and Blackrock Core
Assuming the 90 days horizon Mainstay High Yield is expected to generate 0.56 times more return on investment than Blackrock Core. However, Mainstay High Yield is 1.78 times less risky than Blackrock Core. It trades about 0.14 of its potential returns per unit of risk. Blackrock Core Bond is currently generating about 0.03 per unit of risk. If you would invest 446.00 in Mainstay High Yield on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Mainstay High Yield or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay High Yield vs. Blackrock Core Bond
Performance |
| Timeline |
| Mainstay High Yield |
| Blackrock Core Bond |
Mainstay High and Blackrock Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay High and Blackrock Core
The main advantage of trading using opposite Mainstay High and Blackrock Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay High position performs unexpectedly, Blackrock 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 Blackrock Core will offset losses from the drop in Blackrock Core's long position.| Mainstay High vs. Ab Global Real | Mainstay High vs. Morningstar Global Income | Mainstay High vs. Scharf Global Opportunity | Mainstay High vs. Siit Global Managed |
| Blackrock Core vs. Deutsche Real Estate | Blackrock Core vs. Great West Real Estate | Blackrock Core vs. Columbia Real Estate | Blackrock Core vs. Prudential Real Estate |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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