Correlation Between BlackRock Utility and Pgim High

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

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

Diversification Opportunities for BlackRock Utility and Pgim High

-0.31

Correlation Coefficient

BlackRock Utility  Pgim High

Very good diversification

The 3 months correlation between BlackRock and Pgim is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Utility Infrastructu and Pgim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim High Yield and BlackRock Utility 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 Utility Infrastructure are associated (or correlated) with Pgim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim High Yield has no effect on the direction of BlackRock Utility i.e., BlackRock Utility and Pgim High go up and down completely randomly.

Pair Corralation between BlackRock Utility and Pgim High

Considering the 90-day investment horizon BlackRock Utility Infrastructure is expected to under-perform the Pgim High. In addition to that, BlackRock Utility is 1.44 times more volatile than Pgim High Yield. It trades about 0.0 of its total potential returns per unit of risk. Pgim High Yield is currently generating about 0.13 per unit of volatility. If you would invest  1,355  in Pgim High Yield on December 28, 2024 and sell it today you would earn a total of  66.00  from holding Pgim High Yield or generate 4.87% return on investment over 90 days.

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

BlackRock Utility Infrastructu  vs.  Pgim High Yield

BlackRock Utility

Risk-Adjusted Performance

Very Weak

Over the last 90 days BlackRock Utility Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, BlackRock Utility is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pgim High Yield

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim High Yield are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Pgim High is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with BlackRock Utility and Pgim High

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

The idea behind BlackRock Utility Infrastructure and Pgim High Yield 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 Commodity Directory module to find actively traded commodities issued by global exchanges.