Correlation Between Firsthand Alternative and Blackrock All
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Blackrock All 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 Firsthand Alternative and Blackrock All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Blackrock All Cap Energy, you can compare the effects of market volatilities on Firsthand Alternative and Blackrock All 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 Firsthand Alternative with a short position of Blackrock All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Blackrock All.
Diversification Opportunities for Firsthand Alternative and Blackrock All
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firsthand and Blackrock is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Blackrock All Cap Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock All Cap and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Blackrock All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock All Cap has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Blackrock All go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Blackrock All
Assuming the 90 days horizon Firsthand Alternative Energy is expected to generate 1.31 times more return on investment than Blackrock All. However, Firsthand Alternative is 1.31 times more volatile than Blackrock All Cap Energy. It trades about 0.16 of its potential returns per unit of risk. Blackrock All Cap Energy is currently generating about -0.18 per unit of risk. If you would invest 985.00 in Firsthand Alternative Energy on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Firsthand Alternative Energy or generate 4.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Blackrock All Cap Energy
Performance |
| Timeline |
| Firsthand Alternative |
| Blackrock All Cap |
Firsthand Alternative and Blackrock All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Blackrock All
The main advantage of trading using opposite Firsthand Alternative and Blackrock All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Blackrock All 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 All will offset losses from the drop in Blackrock All's long position.| Firsthand Alternative vs. Guinness Atkinson Alternative | Firsthand Alternative vs. Calvert Global Energy | Firsthand Alternative vs. New Alternatives Fund | Firsthand Alternative vs. Shelton Green Alpha |
| Blackrock All vs. Blackrock California Municipal | Blackrock All vs. Blackrock Balanced Capital | Blackrock All vs. Blackrock Eurofund Class | Blackrock All vs. Blackrock Funds |
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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