Correlation Between BlackRock Core and BLNG

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

By analyzing existing cross correlation between BlackRock Core Bond and BLNG, you can compare the effects of market volatilities on BlackRock Core and BLNG 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 BlackRock Core with a short position of BLNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Core and BLNG.

Diversification Opportunities for BlackRock Core and BLNG

-0.91

Correlation Coefficient

BlackRock Core  BLNG

Pay attention - limited upside

The 3 months correlation between BlackRock and BLNG is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Core Bond and BLNG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLNG and BlackRock Core 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 BlackRock Core Bond are associated (or correlated) with BLNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLNG has no effect on the direction of BlackRock Core i.e., BlackRock Core and BLNG go up and down completely randomly.

Pair Corralation between BlackRock Core and BLNG

If you would invest  1,024  in BLNG on October 24, 2024 and sell it today you would earn a total of  0.00  from holding BLNG or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	5.56%
Values	Daily Returns

BlackRock Core Bond  vs.  BLNG

BlackRock Core Bond

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BlackRock Core Bond has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Etf's technical indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the ETF venture institutional investors.

BLNG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BLNG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BLNG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BlackRock Core and BLNG

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

The idea behind BlackRock Core Bond and BLNG 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.