Correlation Between CATLIN GROUP and BlackRock Frontiers
Can any of the company-specific risk be diversified away by investing in both CATLIN GROUP and BlackRock Frontiers 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 CATLIN GROUP and BlackRock Frontiers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CATLIN GROUP and BlackRock Frontiers Investment, you can compare the effects of market volatilities on CATLIN GROUP and BlackRock Frontiers 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 CATLIN GROUP with a short position of BlackRock Frontiers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CATLIN GROUP and BlackRock Frontiers.
Diversification Opportunities for CATLIN GROUP and BlackRock Frontiers
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CATLIN and BlackRock is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CATLIN GROUP and BlackRock Frontiers Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Frontiers and CATLIN GROUP 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 CATLIN GROUP are associated (or correlated) with BlackRock Frontiers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Frontiers has no effect on the direction of CATLIN GROUP i.e., CATLIN GROUP and BlackRock Frontiers go up and down completely randomly.
Pair Corralation between CATLIN GROUP and BlackRock Frontiers
Assuming the 90 days trading horizon CATLIN GROUP is expected to under-perform the BlackRock Frontiers. But the stock apears to be less risky and, when comparing its historical volatility, CATLIN GROUP is 1.51 times less risky than BlackRock Frontiers. The stock trades about -0.25 of its potential returns per unit of risk. The BlackRock Frontiers Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15,530 in BlackRock Frontiers Investment on November 3, 2024 and sell it today you would earn a total of 120.00 from holding BlackRock Frontiers Investment or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CATLIN GROUP vs. BlackRock Frontiers Investment
Performance |
| Timeline |
| CATLIN GROUP |
| BlackRock Frontiers |
CATLIN GROUP and BlackRock Frontiers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CATLIN GROUP and BlackRock Frontiers
The main advantage of trading using opposite CATLIN GROUP and BlackRock Frontiers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CATLIN GROUP position performs unexpectedly, BlackRock Frontiers 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 Frontiers will offset losses from the drop in BlackRock Frontiers' long position.| CATLIN GROUP vs. Charter Communications Cl | CATLIN GROUP vs. Mobile Tornado Group | CATLIN GROUP vs. iShares Physical Silver | CATLIN GROUP vs. Zoom Video Communications |
| BlackRock Frontiers vs. Odfjell Drilling | BlackRock Frontiers vs. G5 Entertainment AB | BlackRock Frontiers vs. LBG Media PLC | BlackRock Frontiers vs. MTI Wireless Edge |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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