Correlation Between Midas Special and Blackrock Short

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

By analyzing existing cross correlation between Midas Special Fund and Blackrock Short Term Inflat Protected, you can compare the effects of market volatilities on Midas Special and Blackrock Short 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 Midas Special with a short position of Blackrock Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midas Special and Blackrock Short.

Diversification Opportunities for Midas Special and Blackrock Short

-0.24

Correlation Coefficient

Midas Special  Blackrock Short

Very good diversification

The 3 months correlation between Midas and Blackrock is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Midas Special Fund and Blackrock Short Term Inflat Pr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Short Term and Midas Special 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 Midas Special Fund are associated (or correlated) with Blackrock Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Short Term has no effect on the direction of Midas Special i.e., Midas Special and Blackrock Short go up and down completely randomly.

Pair Corralation between Midas Special and Blackrock Short

Assuming the 90 days horizon Midas Special Fund is expected to generate 7.86 times more return on investment than Blackrock Short. However, Midas Special is 7.86 times more volatile than Blackrock Short Term Inflat Protected. It trades about 0.12 of its potential returns per unit of risk. Blackrock Short Term Inflat Protected is currently generating about -0.1 per unit of risk. If you would invest  3,280  in Midas Special Fund on September 24, 2024 and sell it today you would earn a total of  253.00  from holding Midas Special Fund or generate 7.71% return on investment over 90 days.

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

Midas Special Fund  vs.  Blackrock Short Term Inflat Pr

Midas Special

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Midas Special Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Midas Special may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Blackrock Short Term

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Short Term Inflat Protected has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Blackrock Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Midas Special and Blackrock Short

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

The idea behind Midas Special Fund and Blackrock Short Term Inflat Protected 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.