Correlation Between State Street and Blackrock International
Can any of the company-specific risk be diversified away by investing in both State Street and Blackrock International 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 State Street and Blackrock International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Equity and Blackrock International Index, you can compare the effects of market volatilities on State Street and Blackrock International 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 State Street with a short position of Blackrock International. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Blackrock International.
Diversification Opportunities for State Street and Blackrock International
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Blackrock is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding State Street Equity and Blackrock International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock International and State Street 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 State Street Equity are associated (or correlated) with Blackrock International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock International has no effect on the direction of State Street i.e., State Street and Blackrock International go up and down completely randomly.
Pair Corralation between State Street and Blackrock International
Assuming the 90 days horizon State Street Equity is expected to generate 0.75 times more return on investment than Blackrock International. However, State Street Equity is 1.34 times less risky than Blackrock International. It trades about 0.23 of its potential returns per unit of risk. Blackrock International Index is currently generating about 0.07 per unit of risk. If you would invest 44,533 in State Street Equity on June 2, 2025 and sell it today you would earn a total of 4,069 from holding State Street Equity or generate 9.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
State Street Equity vs. Blackrock International Index
Performance |
Timeline |
State Street Equity |
Blackrock International |
State Street and Blackrock International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with State Street and Blackrock International
The main advantage of trading using opposite State Street and Blackrock International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street position performs unexpectedly, Blackrock International 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 International will offset losses from the drop in Blackrock International's long position.State Street vs. Doubleline Emerging Markets | State Street vs. Ashmore Emerging Markets | State Street vs. Sa Emerging Markets | State Street vs. Lord Abbett Diversified |
Blackrock International vs. Blackrock Midcap Index | Blackrock International vs. T Rowe Price | Blackrock International vs. State Street Equity | Blackrock International vs. Blackrock Sp 500 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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