Correlation Between Temple Bar and BlackRock TCP
Can any of the company-specific risk be diversified away by investing in both Temple Bar and BlackRock TCP 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 Temple Bar and BlackRock TCP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Temple Bar Investment and BlackRock TCP Capital, you can compare the effects of market volatilities on Temple Bar and BlackRock TCP 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 Temple Bar with a short position of BlackRock TCP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Temple Bar and BlackRock TCP.
Diversification Opportunities for Temple Bar and BlackRock TCP
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Temple and BlackRock is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Temple Bar Investment and BlackRock TCP Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock TCP Capital and Temple Bar 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 Temple Bar Investment are associated (or correlated) with BlackRock TCP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock TCP Capital has no effect on the direction of Temple Bar i.e., Temple Bar and BlackRock TCP go up and down completely randomly.
Pair Corralation between Temple Bar and BlackRock TCP
Assuming the 90 days trading horizon Temple Bar Investment is expected to generate 0.48 times more return on investment than BlackRock TCP. However, Temple Bar Investment is 2.07 times less risky than BlackRock TCP. It trades about 0.21 of its potential returns per unit of risk. BlackRock TCP Capital is currently generating about -0.11 per unit of risk. If you would invest 33,151 in Temple Bar Investment on September 2, 2025 and sell it today you would earn a total of 3,799 from holding Temple Bar Investment or generate 11.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
Temple Bar Investment vs. BlackRock TCP Capital
Performance |
| Timeline |
| Temple Bar Investment |
| BlackRock TCP Capital |
Temple Bar and BlackRock TCP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Temple Bar and BlackRock TCP
The main advantage of trading using opposite Temple Bar and BlackRock TCP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Temple Bar position performs unexpectedly, BlackRock TCP 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 TCP will offset losses from the drop in BlackRock TCP's long position.| Temple Bar vs. Take Two Interactive Software | Temple Bar vs. Allianz Technology Trust | Temple Bar vs. International Biotechnology Trust | Temple Bar vs. Polar Capital Technology |
| BlackRock TCP vs. Alliance Sports Group | BlackRock TCP vs. Drugs Made In | BlackRock TCP vs. Avanos Medical | BlackRock TCP vs. American Medical Technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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