Correlation Between Blackrock Moderate and Causeway International

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

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

Diversification Opportunities for Blackrock Moderate and Causeway International

0.96

Correlation Coefficient

Blackrock Moderate  Causeway International

Almost no diversification

The 3 months correlation between Blackrock and Causeway is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Moderate Prepared and Causeway International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Causeway International and Blackrock Moderate 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 Moderate Prepared are associated (or correlated) with Causeway International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Causeway International has no effect on the direction of Blackrock Moderate i.e., Blackrock Moderate and Causeway International go up and down completely randomly.

Pair Corralation between Blackrock Moderate and Causeway International

Assuming the 90 days horizon Blackrock Moderate is expected to generate 2.01 times less return on investment than Causeway International. But when comparing it to its historical volatility, Blackrock Moderate Prepared is 1.93 times less risky than Causeway International. It trades about 0.27 of its potential returns per unit of risk. Causeway International Small is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,448  in Causeway International Small on May 6, 2025 and sell it today you would earn a total of  178.00  from holding Causeway International Small or generate 12.29% return on investment over 90 days.

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

Blackrock Moderate Prepared  vs.  Causeway International Small

Blackrock Moderate

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Moderate Prepared are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Blackrock Moderate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Causeway International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Causeway International Small are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Causeway International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Blackrock Moderate and Causeway International

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

The idea behind Blackrock Moderate Prepared and Causeway International Small 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.