Correlation Between Blackrock Inflation and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Blackrock Inflation and Catalyst/millburn 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 Inflation and Catalyst/millburn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Inflation Protected and Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Blackrock Inflation and Catalyst/millburn 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 Inflation with a short position of Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Inflation and Catalyst/millburn.
Diversification Opportunities for Blackrock Inflation and Catalyst/millburn
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackrock and Catalyst/millburn is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Inflation Protected and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge and Blackrock Inflation 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 Inflation Protected are associated (or correlated) with Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Blackrock Inflation i.e., Blackrock Inflation and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Blackrock Inflation and Catalyst/millburn
Assuming the 90 days horizon Blackrock Inflation is expected to generate 26.33 times less return on investment than Catalyst/millburn. But when comparing it to its historical volatility, Blackrock Inflation Protected is 2.02 times less risky than Catalyst/millburn. It trades about 0.02 of its potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,750 in Catalystmillburn Hedge Strategy on August 29, 2024 and sell it today you would earn a total of 111.00 from holding Catalystmillburn Hedge Strategy or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Inflation Protected vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Blackrock Inflation |
| Catalystmillburn Hedge |
Blackrock Inflation and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Inflation and Catalyst/millburn
The main advantage of trading using opposite Blackrock Inflation and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Inflation position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Blackrock Inflation vs. John Hancock Government | Blackrock Inflation vs. Us Government Securities | Blackrock Inflation vs. Vanguard Short Term Government | Blackrock Inflation vs. Inverse Government Long |
| Catalyst/millburn vs. Ab Bond Inflation | Catalyst/millburn vs. Ab Municipal Bond | Catalyst/millburn vs. Arrow Managed Futures | Catalyst/millburn vs. Blackrock Inflation Protected |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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