Correlation Between Growth Fund and Blackrock Advantage

Can any of the company-specific risk be diversified away by investing in both Growth Fund and Blackrock Advantage 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 Growth Fund and Blackrock Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Growth Fund Of and Blackrock Advantage Large, you can compare the effects of market volatilities on Growth Fund and Blackrock Advantage 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 Growth Fund with a short position of Blackrock Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Blackrock Advantage.

Diversification Opportunities for Growth Fund and Blackrock Advantage

0.0

Correlation Coefficient

Growth Fund  Blackrock Advantage

Pay attention - limited upside

The 3 months correlation between Growth and Blackrock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Blackrock Advantage Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Advantage Large and Growth Fund 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 Growth Fund Of are associated (or correlated) with Blackrock Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Advantage Large has no effect on the direction of Growth Fund i.e., Growth Fund and Blackrock Advantage go up and down completely randomly.

Pair Corralation between Growth Fund and Blackrock Advantage

If you would invest  5,896  in Growth Fund Of on March 2, 2024 and sell it today you would earn a total of  1,096  from holding Growth Fund Of or generate 18.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Growth Fund Of  vs.  Blackrock Advantage Large

Growth Fund

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Growth Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Blackrock Advantage Large

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Blackrock Advantage Large has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Blackrock Advantage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Growth Fund and Blackrock Advantage

The main advantage of trading using opposite Growth Fund and Blackrock Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Blackrock Advantage 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 Advantage will offset losses from the drop in Blackrock Advantage's long position.

The idea behind Growth Fund Of and Blackrock Advantage Large pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.