Correlation Between Tema ETF and Blackrock

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

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

Diversification Opportunities for Tema ETF and Blackrock

0.0

Correlation Coefficient

Tema ETF  Blackrock

Pay attention - limited upside

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

Pair Corralation between Tema ETF and Blackrock

If you would invest  2,236  in Tema ETF Trust on October 27, 2024 and sell it today you would earn a total of  120.00  from holding Tema ETF Trust or generate 5.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tema ETF Trust  vs.  Blackrock

Tema ETF Trust

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tema ETF Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Tema ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Blackrock

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Tema ETF and Blackrock

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

The idea behind Tema ETF Trust and Blackrock 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.