Correlation Between Blackrock and Wesmark Balanced
Can any of the company-specific risk be diversified away by investing in both Blackrock and Wesmark Balanced 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 Wesmark Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Sp 500 and Wesmark Balanced Fund, you can compare the effects of market volatilities on Blackrock and Wesmark Balanced 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 Wesmark Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock and Wesmark Balanced.
Diversification Opportunities for Blackrock and Wesmark Balanced
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Wesmark is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Sp 500 and Wesmark Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesmark Balanced 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 Sp 500 are associated (or correlated) with Wesmark Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesmark Balanced has no effect on the direction of Blackrock i.e., Blackrock and Wesmark Balanced go up and down completely randomly.
Pair Corralation between Blackrock and Wesmark Balanced
Assuming the 90 days horizon Blackrock Sp 500 is expected to generate 1.69 times more return on investment than Wesmark Balanced. However, Blackrock is 1.69 times more volatile than Wesmark Balanced Fund. It trades about 0.16 of its potential returns per unit of risk. Wesmark Balanced Fund is currently generating about 0.14 per unit of risk. If you would invest 68,347 in Blackrock Sp 500 on August 30, 2024 and sell it today you would earn a total of 2,029 from holding Blackrock Sp 500 or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Sp 500 vs. Wesmark Balanced Fund
Performance |
| Timeline |
| Blackrock Sp 500 |
| Wesmark Balanced |
Blackrock and Wesmark Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock and Wesmark Balanced
The main advantage of trading using opposite Blackrock and Wesmark Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock position performs unexpectedly, Wesmark Balanced 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 Wesmark Balanced will offset losses from the drop in Wesmark Balanced's long position.| Blackrock vs. Blackrock Sm Cap | Blackrock vs. Columbia Mid Cap | Blackrock vs. Columbia Small Cap | Blackrock vs. Janus Triton Fund |
| Wesmark Balanced vs. Wesmark Growth Fund | Wesmark Balanced vs. Wesmark Government Bond | Wesmark Balanced vs. Wesmark Small Pany | Wesmark Balanced vs. Wesmark West Virginia |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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