Correlation Between Blackhawk Growth and First Trust
Can any of the company-specific risk be diversified away by investing in both Blackhawk Growth and First Trust 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 Blackhawk Growth and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackhawk Growth Corp and First Trust Senior, you can compare the effects of market volatilities on Blackhawk Growth and First Trust 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 Blackhawk Growth with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackhawk Growth and First Trust.
Diversification Opportunities for Blackhawk Growth and First Trust
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackhawk and First is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Growth Corp and First Trust Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Senior and Blackhawk Growth 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 Blackhawk Growth Corp are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Senior has no effect on the direction of Blackhawk Growth i.e., Blackhawk Growth and First Trust go up and down completely randomly.
Pair Corralation between Blackhawk Growth and First Trust
If you would invest 1,023 in First Trust Senior on August 28, 2024 and sell it today you would earn a total of 21.00 from holding First Trust Senior or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blackhawk Growth Corp vs. First Trust Senior
Performance |
| Timeline |
| Blackhawk Growth Corp |
| First Trust Senior |
Blackhawk Growth and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackhawk Growth and First Trust
The main advantage of trading using opposite Blackhawk Growth and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackhawk Growth position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Blackhawk Growth vs. Urbana | Blackhawk Growth vs. Elysee Development Corp | Blackhawk Growth vs. Guardian Capital Group | Blackhawk Growth vs. Princeton Capital |
| First Trust vs. Federated Premier Municipal | First Trust vs. Blackrock Muniyield | First Trust vs. Diamond Hill Investment | First Trust vs. NXG NextGen Infrastructure |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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