Correlation Between Blackrock Global and Virtus Multi

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

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

Diversification Opportunities for Blackrock Global and Virtus Multi

0.94

Correlation Coefficient

Blackrock Global  Virtus Multi

Almost no diversification

The 3 months correlation between Blackrock and Virtus is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Global Longshort and Virtus Multi Sector Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Multi Sector and Blackrock Global 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 Global Longshort are associated (or correlated) with Virtus Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Multi Sector has no effect on the direction of Blackrock Global i.e., Blackrock Global and Virtus Multi go up and down completely randomly.

Pair Corralation between Blackrock Global and Virtus Multi

Assuming the 90 days horizon Blackrock Global Longshort is expected to generate 0.58 times more return on investment than Virtus Multi. However, Blackrock Global Longshort is 1.72 times less risky than Virtus Multi. It trades about 0.57 of its potential returns per unit of risk. Virtus Multi Sector Short is currently generating about 0.18 per unit of risk. If you would invest  913.00  in Blackrock Global Longshort on May 6, 2025 and sell it today you would earn a total of  30.00  from holding Blackrock Global Longshort or generate 3.29% return on investment over 90 days.

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

Blackrock Global Longshort  vs.  Virtus Multi Sector Short

Blackrock Global Lon

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Global Longshort are ranked lower than 45 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Blackrock Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Virtus Multi Sector

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Multi Sector Short are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Virtus Multi 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 Global and Virtus Multi

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

The idea behind Blackrock Global Longshort and Virtus Multi Sector Short 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.