Correlation Between Blackrock Inflation and First Trust
Can any of the company-specific risk be diversified away by investing in both Blackrock Inflation and First Trust 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 Inflation and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Inflation Protected and First Trust Multi Strategy, you can compare the effects of market volatilities on Blackrock Inflation and First Trust 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 Inflation with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Inflation and First Trust.
Diversification Opportunities for Blackrock Inflation and First Trust
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and First is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Inflation Protected and First Trust Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Multi and Blackrock Inflation 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 Inflation Protected are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Multi has no effect on the direction of Blackrock Inflation i.e., Blackrock Inflation and First Trust go up and down completely randomly.
Pair Corralation between Blackrock Inflation and First Trust
Assuming the 90 days horizon Blackrock Inflation Protected is expected to generate 1.99 times more return on investment than First Trust. However, Blackrock Inflation is 1.99 times more volatile than First Trust Multi Strategy. It trades about 0.17 of its potential returns per unit of risk. First Trust Multi Strategy is currently generating about 0.32 per unit of risk. If you would invest 971.00 in Blackrock Inflation Protected on May 30, 2025 and sell it today you would earn a total of 24.00 from holding Blackrock Inflation Protected or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Blackrock Inflation Protected vs. First Trust Multi Strategy
Performance |
| Timeline |
| Blackrock Inflation |
| First Trust Multi |
Blackrock Inflation and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Inflation and First Trust
The main advantage of trading using opposite Blackrock Inflation and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Inflation position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Blackrock Inflation vs. Eagle Small Cap | Blackrock Inflation vs. Smallcap Fund Fka | Blackrock Inflation vs. Aqr Small Cap | Blackrock Inflation vs. Small Midcap Dividend Income |
| First Trust vs. First Trust Managed | First Trust vs. Franklin Templeton Multi Asset | First Trust vs. First Trust Short | First Trust vs. First Trust Short |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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