Correlation Between Blackrock Emerging and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Blackrock Emerging and Multimanager Lifestyle 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 Emerging and Multimanager Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Emerging Markets and Multimanager Lifestyle Balanced, you can compare the effects of market volatilities on Blackrock Emerging and Multimanager Lifestyle 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 Emerging with a short position of Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Emerging and Multimanager Lifestyle.
Diversification Opportunities for Blackrock Emerging and Multimanager Lifestyle
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and Multimanager is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Emerging Markets and Multimanager Lifestyle Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle and Blackrock 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 Blackrock Emerging Markets are associated (or correlated) with Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Blackrock Emerging i.e., Blackrock Emerging and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Blackrock Emerging and Multimanager Lifestyle
Assuming the 90 days horizon Blackrock Emerging Markets is expected to generate 1.98 times more return on investment than Multimanager Lifestyle. However, Blackrock Emerging is 1.98 times more volatile than Multimanager Lifestyle Balanced. It trades about 0.19 of its potential returns per unit of risk. Multimanager Lifestyle Balanced is currently generating about 0.26 per unit of risk. If you would invest 2,495 in Blackrock Emerging Markets on May 1, 2025 and sell it today you would earn a total of 132.00 from holding Blackrock Emerging Markets or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Emerging Markets vs. Multimanager Lifestyle Balance
Performance |
| Timeline |
| Blackrock Emerging |
| Multimanager Lifestyle |
Blackrock Emerging and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Emerging and Multimanager Lifestyle
The main advantage of trading using opposite Blackrock Emerging and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Emerging position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Blackrock Emerging vs. Blackrock California Municipal | Blackrock Emerging vs. Blackrock Balanced Capital | Blackrock Emerging vs. Mkeax | Blackrock Emerging vs. Blackrock Eurofund Class |
| Multimanager Lifestyle vs. Inverse Government Long | Multimanager Lifestyle vs. Ab Municipal Bond | Multimanager Lifestyle vs. Redwood Managed Municipal | Multimanager Lifestyle vs. The National Tax Free |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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