Correlation Between Blackrock Large and Mainstay Common

Can any of the company-specific risk be diversified away by investing in both Blackrock Large and Mainstay Common 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 Large and Mainstay Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackrock Large Cap and Mainstay Mon Stock, you can compare the effects of market volatilities on Blackrock Large and Mainstay Common 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 Large with a short position of Mainstay Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Large and Mainstay Common.

Diversification Opportunities for Blackrock Large and Mainstay Common

0.21

Correlation Coefficient

Blackrock Large  Mainstay Common

Modest diversification

The 3 months correlation between Blackrock and Mainstay is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Large Cap and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock and Blackrock Large 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 Large Cap are associated (or correlated) with Mainstay Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Blackrock Large i.e., Blackrock Large and Mainstay Common go up and down completely randomly.

Pair Corralation between Blackrock Large and Mainstay Common

Assuming the 90 days horizon Blackrock Large Cap is expected to under-perform the Mainstay Common. In addition to that, Blackrock Large is 1.85 times more volatile than Mainstay Mon Stock. It trades about -0.11 of its total potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.02 per unit of volatility. If you would invest  3,837  in Mainstay Mon Stock on December 22, 2024 and sell it today you would earn a total of  40.00  from holding Mainstay Mon Stock or generate 1.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackrock Large Cap  vs.  Mainstay Mon Stock

Blackrock Large Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Mainstay Mon Stock

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mainstay Mon Stock are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mainstay Common is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackrock Large and Mainstay Common

The main advantage of trading using opposite Blackrock Large and Mainstay Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Large position performs unexpectedly, Mainstay Common 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 Common will offset losses from the drop in Mainstay Common's long position.

The idea behind Blackrock Large Cap and Mainstay Mon Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..