Correlation Between BlackBerry and Robinhood Markets

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

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

Diversification Opportunities for BlackBerry and Robinhood Markets

0.36

Correlation Coefficient

BlackBerry  Robinhood Markets

Weak diversification

The 3 months correlation between BlackBerry and Robinhood is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding BlackBerry and Robinhood Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinhood Markets and BlackBerry 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 BlackBerry are associated (or correlated) with Robinhood Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinhood Markets has no effect on the direction of BlackBerry i.e., BlackBerry and Robinhood Markets go up and down completely randomly.

Pair Corralation between BlackBerry and Robinhood Markets

Allowing for the 90-day total investment horizon BlackBerry is expected to generate 16.04 times less return on investment than Robinhood Markets. But when comparing it to its historical volatility, BlackBerry is 1.2 times less risky than Robinhood Markets. It trades about 0.03 of its potential returns per unit of risk. Robinhood Markets is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest  4,999  in Robinhood Markets on May 7, 2025 and sell it today you would earn a total of  5,638  from holding Robinhood Markets or generate 112.78% return on investment over 90 days.

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

BlackBerry  vs.  Robinhood Markets

BlackBerry

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BlackBerry are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, BlackBerry is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Robinhood Markets

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Robinhood Markets are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Robinhood Markets exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BlackBerry and Robinhood Markets

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

The idea behind BlackBerry and Robinhood Markets 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.