Correlation Between BlackRock Long and Auburn Bancorp

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

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

Diversification Opportunities for BlackRock Long and Auburn Bancorp

-0.2

Correlation Coefficient

BlackRock Long  Auburn Bancorp

Good diversification

The 3 months correlation between BlackRock and Auburn is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Long Term Municipal and Auburn Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn Bancorp and BlackRock Long 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 Long Term Municipal are associated (or correlated) with Auburn Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn Bancorp has no effect on the direction of BlackRock Long i.e., BlackRock Long and Auburn Bancorp go up and down completely randomly.

Pair Corralation between BlackRock Long and Auburn Bancorp

Considering the 90-day investment horizon BlackRock Long is expected to generate 54.35 times less return on investment than Auburn Bancorp. But when comparing it to its historical volatility, BlackRock Long Term Municipal is 3.64 times less risky than Auburn Bancorp. It trades about 0.0 of its potential returns per unit of risk. Auburn Bancorp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  851.00  in Auburn Bancorp on December 21, 2024 and sell it today you would earn a total of  49.00  from holding Auburn Bancorp or generate 5.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BlackRock Long Term Municipal  vs.  Auburn Bancorp

BlackRock Long Term

Risk-Adjusted Performance

Very Weak

Over the last 90 days BlackRock Long Term Municipal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BlackRock Long is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Auburn Bancorp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Auburn Bancorp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile fundamental drivers, Auburn Bancorp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with BlackRock Long and Auburn Bancorp

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

The idea behind BlackRock Long Term Municipal and Auburn Bancorp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.