Correlation Between Power Financial and BLACKROCK CDR
Can any of the company-specific risk be diversified away by investing in both Power Financial and BLACKROCK CDR 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 Power Financial and BLACKROCK CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Financial Corp and BLACKROCK CDR, you can compare the effects of market volatilities on Power Financial and BLACKROCK CDR 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 Power Financial with a short position of BLACKROCK CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Financial and BLACKROCK CDR.
Diversification Opportunities for Power Financial and BLACKROCK CDR
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Power and BLACKROCK is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Power Financial Corp and BLACKROCK CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACKROCK CDR and Power Financial 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 Power Financial Corp are associated (or correlated) with BLACKROCK CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACKROCK CDR has no effect on the direction of Power Financial i.e., Power Financial and BLACKROCK CDR go up and down completely randomly.
Pair Corralation between Power Financial and BLACKROCK CDR
Assuming the 90 days trading horizon Power Financial Corp is expected to generate 0.4 times more return on investment than BLACKROCK CDR. However, Power Financial Corp is 2.52 times less risky than BLACKROCK CDR. It trades about 0.09 of its potential returns per unit of risk. BLACKROCK CDR is currently generating about -0.08 per unit of risk. If you would invest 2,492 in Power Financial Corp on August 14, 2025 and sell it today you would earn a total of 78.00 from holding Power Financial Corp or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Financial Corp vs. BLACKROCK CDR
Performance |
| Timeline |
| Power Financial Corp |
| BLACKROCK CDR |
Power Financial and BLACKROCK CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Financial and BLACKROCK CDR
The main advantage of trading using opposite Power Financial and BLACKROCK CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Financial position performs unexpectedly, BLACKROCK CDR 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 CDR will offset losses from the drop in BLACKROCK CDR's long position.| Power Financial vs. Power Financial Corp | Power Financial vs. Dividend Growth Split | Power Financial vs. Berkshire Hathaway CDR | Power Financial vs. Cerrado Gold Corp |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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