Correlation Between BGF Global and BlackRock Global
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By analyzing existing cross correlation between BGF Global Allocation and BlackRock Global Funds, you can compare the effects of market volatilities on BGF Global and BlackRock Global 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 BGF Global with a short position of BlackRock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGF Global and BlackRock Global.
Diversification Opportunities for BGF Global and BlackRock Global
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BGF and BlackRock is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding BGF Global Allocation and BlackRock Global Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Global Funds and BGF Global 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 BGF Global Allocation are associated (or correlated) with BlackRock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Global Funds has no effect on the direction of BGF Global i.e., BGF Global and BlackRock Global go up and down completely randomly.
Pair Corralation between BGF Global and BlackRock Global
Assuming the 90 days trading horizon BGF Global Allocation is expected to generate 0.66 times more return on investment than BlackRock Global. However, BGF Global Allocation is 1.51 times less risky than BlackRock Global. It trades about 0.09 of its potential returns per unit of risk. BlackRock Global Funds is currently generating about 0.06 per unit of risk. If you would invest 6,864 in BGF Global Allocation on September 5, 2024 and sell it today you would earn a total of 845.00 from holding BGF Global Allocation or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.96% |
| Values | Daily Returns |
BGF Global Allocation vs. BlackRock Global Funds
Performance |
| Timeline |
| BGF Global Allocation |
| BlackRock Global Funds |
BGF Global and BlackRock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGF Global and BlackRock Global
The main advantage of trading using opposite BGF Global and BlackRock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGF Global position performs unexpectedly, BlackRock Global 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 Global will offset losses from the drop in BlackRock Global's long position.| BGF Global vs. Groupama Entreprises N | BGF Global vs. Renaissance Europe C | BGF Global vs. Superior Plus Corp | BGF Global vs. Origin Agritech |
| BlackRock Global vs. Groupama Entreprises N | BlackRock Global vs. Renaissance Europe C | BlackRock Global vs. Superior Plus Corp | BlackRock Global vs. Origin Agritech |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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