Correlation Between BlackRock Frontiers and LBG Media
Can any of the company-specific risk be diversified away by investing in both BlackRock Frontiers and LBG Media 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 Frontiers and LBG Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Frontiers Investment and LBG Media PLC, you can compare the effects of market volatilities on BlackRock Frontiers and LBG Media 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 Frontiers with a short position of LBG Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Frontiers and LBG Media.
Diversification Opportunities for BlackRock Frontiers and LBG Media
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BlackRock and LBG is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Frontiers Investment and LBG Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LBG Media PLC and BlackRock Frontiers 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 Frontiers Investment are associated (or correlated) with LBG Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LBG Media PLC has no effect on the direction of BlackRock Frontiers i.e., BlackRock Frontiers and LBG Media go up and down completely randomly.
Pair Corralation between BlackRock Frontiers and LBG Media
Assuming the 90 days trading horizon BlackRock Frontiers Investment is expected to generate 0.59 times more return on investment than LBG Media. However, BlackRock Frontiers Investment is 1.71 times less risky than LBG Media. It trades about 0.01 of its potential returns per unit of risk. LBG Media PLC is currently generating about -0.06 per unit of risk. If you would invest 15,336 in BlackRock Frontiers Investment on October 30, 2024 and sell it today you would earn a total of 14.00 from holding BlackRock Frontiers Investment or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock Frontiers Investment vs. LBG Media PLC
Performance |
| Timeline |
| BlackRock Frontiers |
| LBG Media PLC |
BlackRock Frontiers and LBG Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Frontiers and LBG Media
The main advantage of trading using opposite BlackRock Frontiers and LBG Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Frontiers position performs unexpectedly, LBG Media 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 LBG Media will offset losses from the drop in LBG Media's long position.| BlackRock Frontiers vs. Jacquet Metal Service | BlackRock Frontiers vs. Europa Metals | BlackRock Frontiers vs. Verizon Communications | BlackRock Frontiers vs. Spirent Communications plc |
| LBG Media vs. Lindsell Train Investment | LBG Media vs. Planet Fitness Cl | LBG Media vs. Abingdon Health Plc | LBG Media vs. Ecclesiastical Insurance Office |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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