Correlation Between Blackrock Enhanced and Templeton Emerging
Can any of the company-specific risk be diversified away by investing in both Blackrock Enhanced and Templeton Emerging 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 Enhanced and Templeton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Enhanced Capital and Templeton Emerging Markets, you can compare the effects of market volatilities on Blackrock Enhanced and Templeton Emerging 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 Enhanced with a short position of Templeton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Enhanced and Templeton Emerging.
Diversification Opportunities for Blackrock Enhanced and Templeton Emerging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackrock and Templeton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Enhanced Capital and Templeton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Emerging and Blackrock Enhanced 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 Enhanced Capital are associated (or correlated) with Templeton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Emerging has no effect on the direction of Blackrock Enhanced i.e., Blackrock Enhanced and Templeton Emerging go up and down completely randomly.
Pair Corralation between Blackrock Enhanced and Templeton Emerging
Considering the 90-day investment horizon Blackrock Enhanced Capital is expected to generate 0.61 times more return on investment than Templeton Emerging. However, Blackrock Enhanced Capital is 1.63 times less risky than Templeton Emerging. It trades about 0.15 of its potential returns per unit of risk. Templeton Emerging Markets is currently generating about -0.19 per unit of risk. If you would invest 1,955 in Blackrock Enhanced Capital on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Blackrock Enhanced Capital or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Enhanced Capital vs. Templeton Emerging Markets
Performance |
| Timeline |
| Blackrock Enhanced |
| Templeton Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackrock Enhanced and Templeton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Enhanced and Templeton Emerging
The main advantage of trading using opposite Blackrock Enhanced and Templeton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Enhanced position performs unexpectedly, Templeton Emerging 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 Templeton Emerging will offset losses from the drop in Templeton Emerging's long position.| Blackrock Enhanced vs. Eaton Vance Risk | Blackrock Enhanced vs. Blackrock Muniholdings Closed | Blackrock Enhanced vs. DTF Tax Free | Blackrock Enhanced vs. Eaton Vance Floating |
| Templeton Emerging vs. Tekla Healthcare Investors | Templeton Emerging vs. Cohen Steers Limited | Templeton Emerging vs. Blackrock Enhanced Capital | Templeton Emerging vs. Tekla Life Sciences |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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