Correlation Between BlackRock ETF and Retireful

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

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

Diversification Opportunities for BlackRock ETF and Retireful

0.0

Correlation Coefficient

BlackRock ETF  Retireful

Pay attention - limited upside

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

Pair Corralation between BlackRock ETF and Retireful

If you would invest (100.00) in Retireful on December 21, 2024 and sell it today you would earn a total of  100.00  from holding Retireful or generate -100.0% return on investment over 90 days.

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

BlackRock ETF Trust  vs.  Retireful

BlackRock ETF Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days BlackRock ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical indicators, BlackRock ETF is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Retireful

Risk-Adjusted Performance

Very Weak

Over the last 90 days Retireful has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Retireful is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with BlackRock ETF and Retireful

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

The idea behind BlackRock ETF Trust and Retireful 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.