Correlation Between BlackRock Utility and BlackRock Credit

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BlackRock Utility and BlackRock Credit 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 Utility and BlackRock Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Utility Infrastructure and BlackRock Credit Allocation, you can compare the effects of market volatilities on BlackRock Utility and BlackRock Credit 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 Utility with a short position of BlackRock Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Utility and BlackRock Credit.

Diversification Opportunities for BlackRock Utility and BlackRock Credit

BlackRockBlackRockDiversified AwayBlackRockBlackRockDiversified Away100%
0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between BlackRock and BlackRock is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Utility Infrastructu and BlackRock Credit Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Credit All and BlackRock Utility 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 Utility Infrastructure are associated (or correlated) with BlackRock Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Credit All has no effect on the direction of BlackRock Utility i.e., BlackRock Utility and BlackRock Credit go up and down completely randomly.

Pair Corralation between BlackRock Utility and BlackRock Credit

Considering the 90-day investment horizon BlackRock Utility Infrastructure is expected to generate 1.45 times more return on investment than BlackRock Credit. However, BlackRock Utility is 1.45 times more volatile than BlackRock Credit Allocation. It trades about 0.09 of its potential returns per unit of risk. BlackRock Credit Allocation is currently generating about 0.11 per unit of risk. If you would invest  2,025  in BlackRock Utility Infrastructure on November 24, 2024 and sell it today you would earn a total of  311.00  from holding BlackRock Utility Infrastructure or generate 15.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

BlackRock Utility Infrastructu  vs.  BlackRock Credit Allocation

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5-4-3-2-1012
JavaScript chart by amCharts 3.21.15BUI BTZ
       Timeline  
BlackRock Utility 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Utility Infrastructure are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, BlackRock Utility is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2222.52323.524
BlackRock Credit All 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Credit Allocation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, BlackRock Credit is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10.310.410.510.610.710.8

BlackRock Utility and BlackRock Credit Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.18-2.38-1.58-0.780.01330.81.62.393.19 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15BUI BTZ
       Returns  

Pair Trading with BlackRock Utility and BlackRock Credit

The main advantage of trading using opposite BlackRock Utility and BlackRock Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Utility position performs unexpectedly, BlackRock Credit 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 BlackRock Credit will offset losses from the drop in BlackRock Credit's long position.
The idea behind BlackRock Utility Infrastructure and BlackRock Credit Allocation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Commodity Directory module to find actively traded commodities issued by global exchanges.

Other Complementary Tools

Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities