Correlation Between Blackrock High and Needham Aggressive
Can any of the company-specific risk be diversified away by investing in both Blackrock High and Needham Aggressive 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 High and Needham Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock High Yield and Needham Aggressive Growth, you can compare the effects of market volatilities on Blackrock High and Needham Aggressive 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 High with a short position of Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock High and Needham Aggressive.
Diversification Opportunities for Blackrock High and Needham Aggressive
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackrock and Needham is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock High Yield and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth and Blackrock High 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 High Yield are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of Blackrock High i.e., Blackrock High and Needham Aggressive go up and down completely randomly.
Pair Corralation between Blackrock High and Needham Aggressive
Assuming the 90 days horizon Blackrock High is expected to generate 11.01 times less return on investment than Needham Aggressive. But when comparing it to its historical volatility, Blackrock High Yield is 8.0 times less risky than Needham Aggressive. It trades about 0.08 of its potential returns per unit of risk. Needham Aggressive Growth is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,540 in Needham Aggressive Growth on September 7, 2025 and sell it today you would earn a total of 587.00 from holding Needham Aggressive Growth or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock High Yield vs. Needham Aggressive Growth
Performance |
| Timeline |
| Blackrock High Yield |
| Needham Aggressive Growth |
Blackrock High and Needham Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock High and Needham Aggressive
The main advantage of trading using opposite Blackrock High and Needham Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock High position performs unexpectedly, Needham Aggressive 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 Needham Aggressive will offset losses from the drop in Needham Aggressive's long position.| Blackrock High vs. Blackrock California Municipal | Blackrock High vs. Blackrock Balanced Capital | Blackrock High vs. Mkeax | Blackrock High vs. Blackrock Eurofund Class |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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