Correlation Between High Yield and Pro-blend(r) Moderate
Can any of the company-specific risk be diversified away by investing in both High Yield and Pro-blend(r) Moderate 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 High Yield and Pro-blend(r) Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Bond and Pro Blend Moderate Term, you can compare the effects of market volatilities on High Yield and Pro-blend(r) Moderate 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 High Yield with a short position of Pro-blend(r) Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Yield and Pro-blend(r) Moderate.
Diversification Opportunities for High Yield and Pro-blend(r) Moderate
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between High and Pro-blend(r) is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Bond and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Moderate and High Yield 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 High Yield Bond are associated (or correlated) with Pro-blend(r) Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Moderate has no effect on the direction of High Yield i.e., High Yield and Pro-blend(r) Moderate go up and down completely randomly.
Pair Corralation between High Yield and Pro-blend(r) Moderate
Assuming the 90 days horizon High Yield is expected to generate 1.02 times less return on investment than Pro-blend(r) Moderate. But when comparing it to its historical volatility, High Yield Bond is 2.8 times less risky than Pro-blend(r) Moderate. It trades about 0.43 of its potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,470 in Pro Blend Moderate Term on June 7, 2025 and sell it today you would earn a total of 17.00 from holding Pro Blend Moderate Term or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Bond vs. Pro Blend Moderate Term
Performance |
| Timeline |
| High Yield Bond |
| Pro-blend(r) Moderate |
High Yield and Pro-blend(r) Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Yield and Pro-blend(r) Moderate
The main advantage of trading using opposite High Yield and Pro-blend(r) Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Yield position performs unexpectedly, Pro-blend(r) Moderate 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 Pro-blend(r) Moderate will offset losses from the drop in Pro-blend(r) Moderate's long position.| High Yield vs. Manning Napier Callodine | High Yield vs. Manning Napier Callodine | High Yield vs. Manning Napier Callodine | High Yield vs. Pro Blend Extended Term |
| Pro-blend(r) Moderate vs. Pro Blend Servative Term | Pro-blend(r) Moderate vs. Pro Blend Maximum Term | Pro-blend(r) Moderate vs. Greenspring Fund Retail | Pro-blend(r) Moderate vs. Pro Blend Extended Term |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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