Correlation Between Federated Emerging and Blackrock Emerging
Can any of the company-specific risk be diversified away by investing in both Federated Emerging and Blackrock Emerging 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 Federated Emerging and Blackrock Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Emerging Market and Blackrock Emerging Markets, you can compare the effects of market volatilities on Federated Emerging and Blackrock Emerging 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 Federated Emerging with a short position of Blackrock Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Emerging and Blackrock Emerging.
Diversification Opportunities for Federated Emerging and Blackrock Emerging
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Blackrock is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Federated Emerging Market and Blackrock Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Emerging and Federated Emerging 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 Federated Emerging Market are associated (or correlated) with Blackrock Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Emerging has no effect on the direction of Federated Emerging i.e., Federated Emerging and Blackrock Emerging go up and down completely randomly.
Pair Corralation between Federated Emerging and Blackrock Emerging
Assuming the 90 days horizon Federated Emerging Market is expected to generate 0.28 times more return on investment than Blackrock Emerging. However, Federated Emerging Market is 3.52 times less risky than Blackrock Emerging. It trades about 0.12 of its potential returns per unit of risk. Blackrock Emerging Markets is currently generating about 0.03 per unit of risk. If you would invest 740.00 in Federated Emerging Market on May 2, 2025 and sell it today you would earn a total of 86.00 from holding Federated Emerging Market or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Emerging Market vs. Blackrock Emerging Markets
Performance |
| Timeline |
| Federated Emerging Market |
| Blackrock Emerging |
Federated Emerging and Blackrock Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Emerging and Blackrock Emerging
The main advantage of trading using opposite Federated Emerging and Blackrock Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Emerging position performs unexpectedly, Blackrock Emerging 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 Emerging will offset losses from the drop in Blackrock Emerging's long position.| Federated Emerging vs. Ms Global Fixed | Federated Emerging vs. Us Vector Equity | Federated Emerging vs. Gmo Global Equity | Federated Emerging vs. T Rowe Price |
| Blackrock Emerging vs. Blackrock California Municipal | Blackrock Emerging vs. Blackrock Balanced Capital | Blackrock Emerging vs. Mkeax | Blackrock Emerging vs. Blackrock Eurofund Class |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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