Correlation Between Blackrock All and Pinebridge Dynamic

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

By analyzing existing cross correlation between Blackrock All Cap Energy and Pinebridge Dynamic Asset, you can compare the effects of market volatilities on Blackrock All and Pinebridge Dynamic 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 All with a short position of Pinebridge Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock All and Pinebridge Dynamic.

Diversification Opportunities for Blackrock All and Pinebridge Dynamic

0.84

Correlation Coefficient

Blackrock All  Pinebridge Dynamic

Very poor diversification

The 3 months correlation between Blackrock and Pinebridge is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock All Cap Energy and Pinebridge Dynamic Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinebridge Dynamic Asset and Blackrock All 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 All Cap Energy are associated (or correlated) with Pinebridge Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinebridge Dynamic Asset has no effect on the direction of Blackrock All i.e., Blackrock All and Pinebridge Dynamic go up and down completely randomly.

Pair Corralation between Blackrock All and Pinebridge Dynamic

Assuming the 90 days horizon Blackrock All Cap Energy is expected to generate 2.0 times more return on investment than Pinebridge Dynamic. However, Blackrock All is 2.0 times more volatile than Pinebridge Dynamic Asset. It trades about 0.13 of its potential returns per unit of risk. Pinebridge Dynamic Asset is currently generating about 0.17 per unit of risk. If you would invest  1,190  in Blackrock All Cap Energy on May 5, 2025 and sell it today you would earn a total of  89.00  from holding Blackrock All Cap Energy or generate 7.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Blackrock All Cap Energy  vs.  Pinebridge Dynamic Asset

Blackrock All Cap

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock All Cap Energy are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Blackrock All may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pinebridge Dynamic Asset

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pinebridge Dynamic Asset are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pinebridge Dynamic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackrock All and Pinebridge Dynamic

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

The idea behind Blackrock All Cap Energy and Pinebridge Dynamic Asset 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.