Correlation Between Blackrock Systematic and Litman Gregory

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

By analyzing existing cross correlation between Blackrock Systematic Multi Strategy and Litman Gregory Masters, you can compare the effects of market volatilities on Blackrock Systematic and Litman Gregory 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 Systematic with a short position of Litman Gregory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Systematic and Litman Gregory.

Diversification Opportunities for Blackrock Systematic and Litman Gregory

-0.08

Correlation Coefficient

Blackrock Systematic  Litman Gregory

Good diversification

The 3 months correlation between Blackrock and Litman is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Systematic Multi Str and Litman Gregory Masters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litman Gregory Masters and Blackrock Systematic 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 Systematic Multi Strategy are associated (or correlated) with Litman Gregory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litman Gregory Masters has no effect on the direction of Blackrock Systematic i.e., Blackrock Systematic and Litman Gregory go up and down completely randomly.

Pair Corralation between Blackrock Systematic and Litman Gregory

Assuming the 90 days horizon Blackrock Systematic Multi Strategy is expected to generate 0.04 times more return on investment than Litman Gregory. However, Blackrock Systematic Multi Strategy is 25.57 times less risky than Litman Gregory. It trades about 0.01 of its potential returns per unit of risk. Litman Gregory Masters is currently generating about -0.13 per unit of risk. If you would invest  1,036  in Blackrock Systematic Multi Strategy on May 6, 2025 and sell it today you would earn a total of  2.00  from holding Blackrock Systematic Multi Strategy or generate 0.19% return on investment over 90 days.

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

Blackrock Systematic Multi Str  vs.  Litman Gregory Masters

Blackrock Systematic

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Systematic Multi Strategy are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Blackrock Systematic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Litman Gregory Masters

Risk-Adjusted Performance

Very Weak

Over the last 90 days Litman Gregory Masters has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Blackrock Systematic and Litman Gregory

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

The idea behind Blackrock Systematic Multi Strategy and Litman Gregory Masters 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.