Correlation Between BLK and OMGC
Can any of the company-specific risk be diversified away by investing in both BLK and OMGC 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 BLK and OMGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BLK and OMGC, you can compare the effects of market volatilities on BLK and OMGC 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 BLK with a short position of OMGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLK and OMGC.
Diversification Opportunities for BLK and OMGC
Pay attention - limited upside
The 3 months correlation between BLK and OMGC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BLK and OMGC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OMGC and BLK 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 BLK are associated (or correlated) with OMGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OMGC has no effect on the direction of BLK i.e., BLK and OMGC go up and down completely randomly.
Pair Corralation between BLK and OMGC
If you would invest 2.08 in BLK on September 2, 2024 and sell it today you would earn a total of 0.81 from holding BLK or generate 38.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BLK vs. OMGC
Performance |
| Timeline |
| BLK |
| OMGC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BLK and OMGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLK and OMGC
The main advantage of trading using opposite BLK and OMGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLK position performs unexpectedly, OMGC 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 OMGC will offset losses from the drop in OMGC's long position.The idea behind BLK and OMGC 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.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |