Correlation Between Blackrock Moderate and Sentinel Multi-asset

Can any of the company-specific risk be diversified away by investing in both Blackrock Moderate and Sentinel Multi-asset 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 Sentinel Multi-asset 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 Sentinel Multi Asset Income, you can compare the effects of market volatilities on Blackrock Moderate and Sentinel Multi-asset 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 Sentinel Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Moderate and Sentinel Multi-asset.

Diversification Opportunities for Blackrock Moderate and Sentinel Multi-asset

-0.01

Correlation Coefficient

Blackrock Moderate  Sentinel Multi-asset

Good diversification

The 3 months correlation between Blackrock and Sentinel is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Moderate Prepared and Sentinel Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sentinel Multi Asset 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 Sentinel Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sentinel Multi Asset has no effect on the direction of Blackrock Moderate i.e., Blackrock Moderate and Sentinel Multi-asset go up and down completely randomly.

Pair Corralation between Blackrock Moderate and Sentinel Multi-asset

Assuming the 90 days horizon Blackrock Moderate Prepared is expected to generate 0.17 times more return on investment than Sentinel Multi-asset. However, Blackrock Moderate Prepared is 5.77 times less risky than Sentinel Multi-asset. It trades about 0.1 of its potential returns per unit of risk. Sentinel Multi Asset Income is currently generating about -0.09 per unit of risk. If you would invest  1,417  in Blackrock Moderate Prepared on September 14, 2025 and sell it today you would earn a total of  32.00  from holding Blackrock Moderate Prepared or generate 2.26% return on investment over 90 days.

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

Blackrock Moderate Prepared  vs.  Sentinel Multi Asset Income

Blackrock Moderate

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Moderate Prepared are ranked lower than 7 (%) 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.

Sentinel Multi Asset

Risk-Adjusted Performance

Weakest

Over the last 90 days Sentinel Multi Asset Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Blackrock Moderate and Sentinel Multi-asset

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

The idea behind Blackrock Moderate Prepared and Sentinel Multi Asset Income 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.