Correlation Between BlackRock High and AB Active
Can any of the company-specific risk be diversified away by investing in both BlackRock High and AB Active 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 High and AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock High Yield and AB Active ETFs,, you can compare the effects of market volatilities on BlackRock High and AB Active 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 High with a short position of AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock High and AB Active.
Diversification Opportunities for BlackRock High and AB Active
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BlackRock and SYFI is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock High Yield and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, and BlackRock High 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 High Yield are associated (or correlated) with AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of BlackRock High i.e., BlackRock High and AB Active go up and down completely randomly.
Pair Corralation between BlackRock High and AB Active
Given the investment horizon of 90 days BlackRock High Yield is expected to generate 1.48 times more return on investment than AB Active. However, BlackRock High is 1.48 times more volatile than AB Active ETFs,. It trades about 0.23 of its potential returns per unit of risk. AB Active ETFs, is currently generating about 0.23 per unit of risk. If you would invest 2,274 in BlackRock High Yield on September 1, 2024 and sell it today you would earn a total of 46.00 from holding BlackRock High Yield or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock High Yield vs. AB Active ETFs,
Performance |
| Timeline |
| BlackRock High Yield |
| AB Active ETFs, |
BlackRock High and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock High and AB Active
The main advantage of trading using opposite BlackRock High and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock High position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active's long position.| BlackRock High vs. Franklin Liberty Federal | BlackRock High vs. Hartford Municipal Opportunities | BlackRock High vs. IQ MacKay Municipal | BlackRock High vs. First Trust Municipal |
| AB Active vs. BlackRock High Yield | AB Active vs. Hartford Short Duration | AB Active vs. SSGA Active Trust | AB Active vs. Aquagold International |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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