Correlation Between BlackRock Science and Highland Opportunities

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

By analyzing existing cross correlation between BlackRock Science Tech and Highland Opportunities And, you can compare the effects of market volatilities on BlackRock Science and Highland Opportunities 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 Science with a short position of Highland Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Science and Highland Opportunities.

Diversification Opportunities for BlackRock Science and Highland Opportunities

0.78

Correlation Coefficient

BlackRock Science  Highland Opportunities

Poor diversification

The 3 months correlation between BlackRock and Highland is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Science Tech and Highland Opportunities And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Opportunities and BlackRock Science 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 Science Tech are associated (or correlated) with Highland Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Opportunities has no effect on the direction of BlackRock Science i.e., BlackRock Science and Highland Opportunities go up and down completely randomly.

Pair Corralation between BlackRock Science and Highland Opportunities

Considering the 90-day investment horizon BlackRock Science Tech is expected to generate 0.61 times more return on investment than Highland Opportunities. However, BlackRock Science Tech is 1.64 times less risky than Highland Opportunities. It trades about 0.34 of its potential returns per unit of risk. Highland Opportunities And is currently generating about 0.2 per unit of risk. If you would invest  3,354  in BlackRock Science Tech on May 7, 2025 and sell it today you would earn a total of  554.00  from holding BlackRock Science Tech or generate 16.52% return on investment over 90 days.

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

BlackRock Science Tech  vs.  Highland Opportunities And

BlackRock Science Tech

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Science Tech are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, BlackRock Science unveiled solid returns over the last few months and may actually be approaching a breakup point.

Highland Opportunities

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Opportunities And are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Highland Opportunities displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BlackRock Science and Highland Opportunities

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

The idea behind BlackRock Science Tech and Highland Opportunities And 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..