Correlation Between Caixabank and BlackRock

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Can any of the company-specific risk be diversified away by investing in both Caixabank and BlackRock 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 Caixabank and BlackRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA ADR and BlackRock, you can compare the effects of market volatilities on Caixabank and BlackRock 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 Caixabank with a short position of BlackRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and BlackRock.

Diversification Opportunities for Caixabank and BlackRock

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Caixabank and BlackRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA ADR and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock and Caixabank 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 Caixabank SA ADR are associated (or correlated) with BlackRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of Caixabank i.e., Caixabank and BlackRock go up and down completely randomly.

Pair Corralation between Caixabank and BlackRock

If you would invest  69,600  in BlackRock on December 29, 2023 and sell it today you would earn a total of  13,770  from holding BlackRock or generate 19.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Caixabank SA ADR  vs.  BlackRock

 Performance 
       Timeline  
Caixabank SA ADR 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Solid
Over the last 90 days Caixabank SA ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Caixabank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
BlackRock 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, BlackRock is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Caixabank and BlackRock Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Caixabank and BlackRock

The main advantage of trading using opposite Caixabank and BlackRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank position performs unexpectedly, BlackRock 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 will offset losses from the drop in BlackRock's long position.
The idea behind Caixabank SA ADR and BlackRock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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