Correlation Between Blackrock Advantage and Small Cap
Can any of the company-specific risk be diversified away by investing in both Blackrock Advantage and Small Cap 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 Blackrock Advantage and Small Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Advantage Small and Small Cap Value, you can compare the effects of market volatilities on Blackrock Advantage and Small Cap 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 Blackrock Advantage with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Advantage and Small Cap.
Diversification Opportunities for Blackrock Advantage and Small Cap
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Small is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Advantage Small and Small Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value and Blackrock Advantage 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 Blackrock Advantage Small are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Blackrock Advantage i.e., Blackrock Advantage and Small Cap go up and down completely randomly.
Pair Corralation between Blackrock Advantage and Small Cap
Assuming the 90 days horizon Blackrock Advantage Small is expected to generate 1.1 times more return on investment than Small Cap. However, Blackrock Advantage is 1.1 times more volatile than Small Cap Value. It trades about 0.06 of its potential returns per unit of risk. Small Cap Value is currently generating about -0.07 per unit of risk. If you would invest 1,813 in Blackrock Advantage Small on August 18, 2025 and sell it today you would earn a total of 87.00 from holding Blackrock Advantage Small or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Advantage Small vs. Small Cap Value
Performance |
| Timeline |
| Blackrock Advantage Small |
| Small Cap Value |
Blackrock Advantage and Small Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Advantage and Small Cap
The main advantage of trading using opposite Blackrock Advantage and Small Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Advantage position performs unexpectedly, Small Cap 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 Small Cap will offset losses from the drop in Small Cap's long position.| Blackrock Advantage vs. Blackrock Advantage Small | Blackrock Advantage vs. Blackrock Advantage Small | Blackrock Advantage vs. Simt Tax Managed Large | Blackrock Advantage vs. Simt Tax Managed Large |
| Small Cap vs. Small Cap Growth | Small Cap vs. Small Cap Growth | Small Cap vs. Blackrock Advantage Small | Small Cap vs. Blackrock Advantage Small |
Check out your portfolio center.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 CEOs Directory module to screen CEOs from public companies around the world.
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