Correlation Between Blackrock and Utilities Select

Can any of the company-specific risk be diversified away by investing in both Blackrock and Utilities Select 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 and Utilities Select into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackrock and Utilities Select Sector, you can compare the effects of market volatilities on Blackrock and Utilities Select 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 with a short position of Utilities Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock and Utilities Select.

Diversification Opportunities for Blackrock and Utilities Select

0.23

Correlation Coefficient

Blackrock  Utilities Select

Modest diversification

The 3 months correlation between Blackrock and Utilities is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock and Utilities Select Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utilities Select Sector and Blackrock 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 are associated (or correlated) with Utilities Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utilities Select Sector has no effect on the direction of Blackrock i.e., Blackrock and Utilities Select go up and down completely randomly.

Pair Corralation between Blackrock and Utilities Select

If you would invest  7,900  in Utilities Select Sector on May 4, 2025 and sell it today you would earn a total of  680.00  from holding Utilities Select Sector or generate 8.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.61%
Values	Daily Returns

Blackrock  vs.  Utilities Select Sector

Blackrock

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Blackrock is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Utilities Select Sector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Utilities Select Sector are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Utilities Select may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Blackrock and Utilities Select

The main advantage of trading using opposite Blackrock and Utilities Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock position performs unexpectedly, Utilities Select 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 Utilities Select will offset losses from the drop in Utilities Select's long position.

The idea behind Blackrock and Utilities Select Sector 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.