Correlation Between Stone Ridge and Blackrock Strategic
Can any of the company-specific risk be diversified away by investing in both Stone Ridge and Blackrock Strategic 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 Stone Ridge and Blackrock Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Blackrock Strategic Opps, you can compare the effects of market volatilities on Stone Ridge and Blackrock Strategic 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 Stone Ridge with a short position of Blackrock Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Blackrock Strategic.
Diversification Opportunities for Stone Ridge and Blackrock Strategic
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stone and Blackrock is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified and Blackrock Strategic Opps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Strategic Opps and Stone Ridge 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 Stone Ridge Diversified are associated (or correlated) with Blackrock Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Strategic Opps has no effect on the direction of Stone Ridge i.e., Stone Ridge and Blackrock Strategic go up and down completely randomly.
Pair Corralation between Stone Ridge and Blackrock Strategic
Assuming the 90 days horizon Stone Ridge Diversified is expected to generate 1.8 times more return on investment than Blackrock Strategic. However, Stone Ridge is 1.8 times more volatile than Blackrock Strategic Opps. It trades about 0.34 of its potential returns per unit of risk. Blackrock Strategic Opps is currently generating about 0.39 per unit of risk. If you would invest 1,129 in Stone Ridge Diversified on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Stone Ridge Diversified or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Blackrock Strategic Opps
Performance |
| Timeline |
| Stone Ridge Diversified |
| Blackrock Strategic Opps |
Stone Ridge and Blackrock Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Blackrock Strategic
The main advantage of trading using opposite Stone Ridge and Blackrock Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge position performs unexpectedly, Blackrock Strategic 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 Strategic will offset losses from the drop in Blackrock Strategic's long position.| Stone Ridge vs. Touchstone Premium Yield | Stone Ridge vs. Dws Government Money | Stone Ridge vs. Alliancebernstein National Municipal | Stone Ridge vs. T Rowe Price |
| Blackrock Strategic vs. Jpmorgan Diversified Fund | Blackrock Strategic vs. Lord Abbett Diversified | Blackrock Strategic vs. Stone Ridge Diversified | Blackrock Strategic vs. Fulcrum Diversified Absolute |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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