Correlation Between Growth Fund and BlackRock ETF
Can any of the company-specific risk be diversified away by investing in both Growth Fund and BlackRock ETF 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 Growth Fund and BlackRock ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and BlackRock ETF Trust, you can compare the effects of market volatilities on Growth Fund and BlackRock ETF 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 Growth Fund with a short position of BlackRock ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and BlackRock ETF.
Diversification Opportunities for Growth Fund and BlackRock ETF
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Growth and BlackRock is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and BlackRock ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock ETF Trust and Growth Fund 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 Growth Fund Of are associated (or correlated) with BlackRock ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock ETF Trust has no effect on the direction of Growth Fund i.e., Growth Fund and BlackRock ETF go up and down completely randomly.
Pair Corralation between Growth Fund and BlackRock ETF
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.7 times more return on investment than BlackRock ETF. However, Growth Fund Of is 1.42 times less risky than BlackRock ETF. It trades about 0.08 of its potential returns per unit of risk. BlackRock ETF Trust is currently generating about 0.03 per unit of risk. If you would invest 7,594 in Growth Fund Of on October 22, 2024 and sell it today you would earn a total of 104.00 from holding Growth Fund Of or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. BlackRock ETF Trust
Performance |
| Timeline |
| Growth Fund |
| BlackRock ETF Trust |
Growth Fund and BlackRock ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and BlackRock ETF
The main advantage of trading using opposite Growth Fund and BlackRock ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, BlackRock ETF 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 ETF will offset losses from the drop in BlackRock ETF's long position.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| BlackRock ETF vs. Ultimus Managers Trust | BlackRock ETF vs. American Beacon Select | BlackRock ETF vs. Direxion Daily Regional | BlackRock ETF vs. Direxion Daily SP |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |