Correlation Between Managed Account and Blackrock Inflation
Can any of the company-specific risk be diversified away by investing in both Managed Account and Blackrock Inflation 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 Managed Account and Blackrock Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Managed Account Series and Blackrock Inflation Protected, you can compare the effects of market volatilities on Managed Account and Blackrock Inflation 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 Managed Account with a short position of Blackrock Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Managed Account and Blackrock Inflation.
Diversification Opportunities for Managed Account and Blackrock Inflation
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Managed and Blackrock is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Managed Account Series and Blackrock Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Inflation and Managed Account 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 Managed Account Series are associated (or correlated) with Blackrock Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Inflation has no effect on the direction of Managed Account i.e., Managed Account and Blackrock Inflation go up and down completely randomly.
Pair Corralation between Managed Account and Blackrock Inflation
Assuming the 90 days horizon Managed Account is expected to generate 1.52 times less return on investment than Blackrock Inflation. But when comparing it to its historical volatility, Managed Account Series is 1.24 times less risky than Blackrock Inflation. It trades about 0.13 of its potential returns per unit of risk. Blackrock Inflation Protected is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 928.00 in Blackrock Inflation Protected on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Blackrock Inflation Protected or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Managed Account Series vs. Blackrock Inflation Protected
Performance |
| Timeline |
| Managed Account Series |
| Blackrock Inflation |
Managed Account and Blackrock Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Managed Account and Blackrock Inflation
The main advantage of trading using opposite Managed Account and Blackrock Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Managed Account position performs unexpectedly, Blackrock Inflation 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 Inflation will offset losses from the drop in Blackrock Inflation's long position.| Managed Account vs. Cref Inflation Linked Bond | Managed Account vs. Asg Managed Futures | Managed Account vs. Tiaa Cref Inflation Linked Bond | Managed Account vs. Ab Bond Inflation |
| Blackrock Inflation vs. Managed Account Series | Blackrock Inflation vs. Blackrock Hi Yld | Blackrock Inflation vs. Blackrock High Yield | Blackrock Inflation vs. Blackrock Hi Yld |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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