Correlation Between Global Gold and Blackrock Fundamental

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

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

Diversification Opportunities for Global Gold and Blackrock Fundamental

0.0

Correlation Coefficient

Global Gold  Blackrock Fundamental

Pay attention - limited upside

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

Pair Corralation between Global Gold and Blackrock Fundamental

If you would invest (100.00) in Blackrock Fundamental Growth on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Blackrock Fundamental Growth or generate -100.0% return on investment over 90 days.

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

Global Gold Fund  vs.  Blackrock Fundamental Growth

Global Gold Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Gold Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Blackrock Fundamental

Risk-Adjusted Performance

0 of 100

Insignificant

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

Pair Trading with Global Gold and Blackrock Fundamental

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

The idea behind Global Gold Fund and Blackrock Fundamental Growth 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 Transaction History module to view history of all your transactions and understand their impact on performance.