Correlation Between Blackrock Strategic and Western Asset
Can any of the company-specific risk be diversified away by investing in both Blackrock Strategic and Western Asset 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 Strategic and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Strategic Opps and Western Asset Total, you can compare the effects of market volatilities on Blackrock Strategic and Western Asset 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 Strategic with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Strategic and Western Asset.
Diversification Opportunities for Blackrock Strategic and Western Asset
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BlackRock and Western is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Strategic Opps and Western Asset Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Total and Blackrock Strategic 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 Strategic Opps are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Total has no effect on the direction of Blackrock Strategic i.e., Blackrock Strategic and Western Asset go up and down completely randomly.
Pair Corralation between Blackrock Strategic and Western Asset
Assuming the 90 days horizon Blackrock Strategic Opps is expected to generate 0.73 times more return on investment than Western Asset. However, Blackrock Strategic Opps is 1.38 times less risky than Western Asset. It trades about 0.2 of its potential returns per unit of risk. Western Asset Total is currently generating about 0.12 per unit of risk. If you would invest 947.00 in Blackrock Strategic Opps on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Blackrock Strategic Opps or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Strategic Opps vs. Western Asset Total
Performance |
| Timeline |
| Blackrock Strategic Opps |
| Western Asset Total |
Blackrock Strategic and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Strategic and Western Asset
The main advantage of trading using opposite Blackrock Strategic and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Strategic position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Blackrock Strategic vs. Columbia Global Technology | Blackrock Strategic vs. Allianzgi Technology Fund | Blackrock Strategic vs. Fidelity Advisor Technology | Blackrock Strategic vs. Hennessy Technology Fund |
| Western Asset vs. Goehring Rozencwajg Resources | Western Asset vs. Franklin Natural Resources | Western Asset vs. Fidelity Advisor Energy | Western Asset vs. Oil Gas Ultrasector |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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