Correlation Between BlackRock and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both BlackRock and Mapletree Logistics 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 BlackRock and Mapletree Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock and Mapletree Logistics Trust, you can compare the effects of market volatilities on BlackRock and Mapletree Logistics 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 with a short position of Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock and Mapletree Logistics.
Diversification Opportunities for BlackRock and Mapletree Logistics
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between BlackRock and Mapletree is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust and BlackRock 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 are associated (or correlated) with Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of BlackRock i.e., BlackRock and Mapletree Logistics go up and down completely randomly.
Pair Corralation between BlackRock and Mapletree Logistics
Considering the 90-day investment horizon BlackRock is expected to generate 0.34 times more return on investment than Mapletree Logistics. However, BlackRock is 2.93 times less risky than Mapletree Logistics. It trades about 0.07 of its potential returns per unit of risk. Mapletree Logistics Trust is currently generating about 0.02 per unit of risk. If you would invest 67,880 in BlackRock on September 4, 2024 and sell it today you would earn a total of 34,131 from holding BlackRock or generate 50.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.1% |
| Values | Daily Returns |
BlackRock vs. Mapletree Logistics Trust
Performance |
| Timeline |
| BlackRock |
| Mapletree Logistics Trust |
BlackRock and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock and Mapletree Logistics
The main advantage of trading using opposite BlackRock and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| BlackRock vs. KKR Co LP | BlackRock vs. Apollo Global Management | BlackRock vs. Brookfield Asset Management | BlackRock vs. Carlyle Group |
| Mapletree Logistics vs. Eldorado Gold Corp | Mapletree Logistics vs. Tarsus Pharmaceuticals | Mapletree Logistics vs. Western Copper and | Mapletree Logistics vs. Amkor Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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