Correlation Between Acorn Capital and BlackRock TCP

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Can any of the company-specific risk be diversified away by investing in both Acorn Capital and BlackRock TCP 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 Acorn Capital and BlackRock TCP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorn Capital Investment and BlackRock TCP Capital, you can compare the effects of market volatilities on Acorn Capital and BlackRock TCP 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 Acorn Capital with a short position of BlackRock TCP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn Capital and BlackRock TCP.

Diversification Opportunities for Acorn Capital and BlackRock TCP

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Acorn and BlackRock is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Acorn Capital Investment and BlackRock TCP Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock TCP Capital and Acorn Capital 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 Acorn Capital Investment are associated (or correlated) with BlackRock TCP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock TCP Capital has no effect on the direction of Acorn Capital i.e., Acorn Capital and BlackRock TCP go up and down completely randomly.

Pair Corralation between Acorn Capital and BlackRock TCP

Assuming the 90 days trading horizon Acorn Capital Investment is expected to generate 0.81 times more return on investment than BlackRock TCP. However, Acorn Capital Investment is 1.24 times less risky than BlackRock TCP. It trades about 0.05 of its potential returns per unit of risk. BlackRock TCP Capital is currently generating about -0.11 per unit of risk. If you would invest  87.00  in Acorn Capital Investment on September 9, 2025 and sell it today you would earn a total of  3.00  from holding Acorn Capital Investment or generate 3.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.46%
ValuesDaily Returns

Acorn Capital Investment  vs.  BlackRock TCP Capital

 Performance 
       Timeline  
Acorn Capital Investment 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Acorn Capital Investment are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Acorn Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
BlackRock TCP Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days BlackRock TCP Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Acorn Capital and BlackRock TCP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Acorn Capital and BlackRock TCP

The main advantage of trading using opposite Acorn Capital and BlackRock TCP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn Capital position performs unexpectedly, BlackRock TCP 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 TCP will offset losses from the drop in BlackRock TCP's long position.
The idea behind Acorn Capital Investment and BlackRock TCP Capital 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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