Correlation Between EJF Investments and BlackRock Frontiers
Can any of the company-specific risk be diversified away by investing in both EJF Investments 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 EJF Investments and BlackRock Frontiers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EJF Investments and BlackRock Frontiers Investment, you can compare the effects of market volatilities on EJF Investments 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 EJF Investments with a short position of BlackRock Frontiers. Check out your portfolio center. Please also check ongoing floating volatility patterns of EJF Investments and BlackRock Frontiers.
Diversification Opportunities for EJF Investments and BlackRock Frontiers
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EJF and BlackRock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding EJF Investments and BlackRock Frontiers Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Frontiers and EJF Investments 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 EJF Investments 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 EJF Investments i.e., EJF Investments and BlackRock Frontiers go up and down completely randomly.
Pair Corralation between EJF Investments and BlackRock Frontiers
Assuming the 90 days trading horizon EJF Investments is expected to generate 1.65 times more return on investment than BlackRock Frontiers. However, EJF Investments is 1.65 times more volatile than BlackRock Frontiers Investment. It trades about 0.14 of its potential returns per unit of risk. BlackRock Frontiers Investment is currently generating about 0.1 per unit of risk. If you would invest 9,962 in EJF Investments on November 2, 2024 and sell it today you would earn a total of 2,488 from holding EJF Investments or generate 24.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EJF Investments vs. BlackRock Frontiers Investment
Performance |
| Timeline |
| EJF Investments |
| BlackRock Frontiers |
EJF Investments and BlackRock Frontiers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EJF Investments and BlackRock Frontiers
The main advantage of trading using opposite EJF Investments and BlackRock Frontiers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EJF Investments 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.| EJF Investments vs. SupplyMe Capital PLC | EJF Investments vs. Premier African Minerals | EJF Investments vs. SANTANDER UK 8 | EJF Investments vs. Tower Resources plc |
| BlackRock Frontiers vs. Public Storage | BlackRock Frontiers vs. Kaufman Et Broad | BlackRock Frontiers vs. Rosslyn Data Technologies | BlackRock Frontiers vs. Roadside Real Estate |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |