Correlation Between Macquarie Global and BlackRock Floating

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

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

Diversification Opportunities for Macquarie Global and BlackRock Floating

0.0

Correlation Coefficient

Macquarie Global  BlackRock Floating

Pay attention - limited upside

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

Pair Corralation between Macquarie Global and BlackRock Floating

If you would invest (100.00) in Macquarie Global Infrastructure on December 23, 2024 and sell it today you would earn a total of  100.00  from holding Macquarie Global Infrastructure or generate -100.0% return on investment over 90 days.

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

Macquarie Global Infrastructur  vs.  BlackRock Floating Rate

Macquarie Global Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquarie Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Macquarie Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

BlackRock Floating Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days BlackRock Floating Rate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, BlackRock Floating is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Macquarie Global and BlackRock Floating

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

The idea behind Macquarie Global Infrastructure and BlackRock Floating Rate 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.