Correlation Between BlackRock Global and BGF Global
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By analyzing existing cross correlation between BlackRock Global Funds and BGF Global Allocation, you can compare the effects of market volatilities on BlackRock Global and BGF Global 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 Global with a short position of BGF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Global and BGF Global.
Diversification Opportunities for BlackRock Global and BGF Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between BlackRock and BGF is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Global Funds and BGF Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Global Allocation and BlackRock Global 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 Global Funds are associated (or correlated) with BGF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Global Allocation has no effect on the direction of BlackRock Global i.e., BlackRock Global and BGF Global go up and down completely randomly.
Pair Corralation between BlackRock Global and BGF Global
Assuming the 90 days trading horizon BlackRock Global Funds is expected to generate 1.63 times more return on investment than BGF Global. However, BlackRock Global is 1.63 times more volatile than BGF Global Allocation. It trades about 0.41 of its potential returns per unit of risk. BGF Global Allocation is currently generating about 0.27 per unit of risk. If you would invest 4,884 in BlackRock Global Funds on October 21, 2024 and sell it today you would earn a total of 274.00 from holding BlackRock Global Funds or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock Global Funds vs. BGF Global Allocation
Performance |
| Timeline |
| BlackRock Global Funds |
| BGF Global Allocation |
BlackRock Global and BGF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Global and BGF Global
The main advantage of trading using opposite BlackRock Global and BGF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Global position performs unexpectedly, BGF Global 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 BGF Global will offset losses from the drop in BGF Global's long position.| BlackRock Global vs. Groupama Entreprises N | BlackRock Global vs. Renaissance Europe C | BlackRock Global vs. Superior Plus Corp | BlackRock Global vs. Intel |
| BGF Global vs. Groupama Entreprises N | BGF Global vs. Renaissance Europe C | BGF Global vs. Superior Plus Corp | BGF Global vs. Intel |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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