Correlation Between LiCycle Holdings and Blackrock Funds

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

By analyzing existing cross correlation between LiCycle Holdings Corp and Blackrock Funds Iii, you can compare the effects of market volatilities on LiCycle Holdings and Blackrock Funds 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 LiCycle Holdings with a short position of Blackrock Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of LiCycle Holdings and Blackrock Funds.

Diversification Opportunities for LiCycle Holdings and Blackrock Funds

-0.1

Correlation Coefficient

LiCycle Holdings  Blackrock Funds

Good diversification

The 3 months correlation between LiCycle and Blackrock is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding LiCycle Holdings Corp and Blackrock Funds Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Funds Iii and LiCycle Holdings 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 LiCycle Holdings Corp are associated (or correlated) with Blackrock Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Funds Iii has no effect on the direction of LiCycle Holdings i.e., LiCycle Holdings and Blackrock Funds go up and down completely randomly.

Pair Corralation between LiCycle Holdings and Blackrock Funds

If you would invest  100.00  in Blackrock Funds Iii on October 6, 2024 and sell it today you would earn a total of  0.00  from holding Blackrock Funds Iii or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.35%
Values	Daily Returns

LiCycle Holdings Corp  vs.  Blackrock Funds Iii

LiCycle Holdings Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in LiCycle Holdings Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental indicators, LiCycle Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Blackrock Funds Iii

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Funds Iii are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Blackrock Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with LiCycle Holdings and Blackrock Funds

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

The idea behind LiCycle Holdings Corp and Blackrock Funds Iii 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.