Correlation Between Blackrock High and Western Asset
Can any of the company-specific risk be diversified away by investing in both Blackrock High and Western Asset 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 High and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock High Yield and Western Asset Diversified, you can compare the effects of market volatilities on Blackrock High and Western Asset 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 High with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock High and Western Asset.
Diversification Opportunities for Blackrock High and Western Asset
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Western is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock High Yield and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Blackrock 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 Blackrock High Yield are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Diversified has no effect on the direction of Blackrock High i.e., Blackrock High and Western Asset go up and down completely randomly.
Pair Corralation between Blackrock High and Western Asset
Assuming the 90 days horizon Blackrock High Yield is expected to generate 0.59 times more return on investment than Western Asset. However, Blackrock High Yield is 1.69 times less risky than Western Asset. It trades about 0.07 of its potential returns per unit of risk. Western Asset Diversified is currently generating about -0.12 per unit of risk. If you would invest 714.00 in Blackrock High Yield on September 15, 2024 and sell it today you would earn a total of 5.00 from holding Blackrock High Yield or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Blackrock High Yield vs. Western Asset Diversified
Performance |
Timeline |
Blackrock High Yield |
Western Asset Diversified |
Blackrock High and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackrock High and Western Asset
The main advantage of trading using opposite Blackrock High and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock High position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.Blackrock High vs. Western Asset Diversified | Blackrock High vs. Ep Emerging Markets | Blackrock High vs. Ab All Market | Blackrock High vs. Shelton Emerging Markets |
Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |