Correlation Between BlackRock Utility and BlackRock Credit

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

By analyzing existing cross correlation between BlackRock Utility Infrastructure and BlackRock Credit Allocation, you can compare the effects of market volatilities on BlackRock Utility and BlackRock Credit 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 Utility with a short position of BlackRock Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Utility and BlackRock Credit.

Diversification Opportunities for BlackRock Utility and BlackRock Credit

0.97

Correlation Coefficient

BlackRock Utility  BlackRock Credit

Almost no diversification

The 3 months correlation between BlackRock and BlackRock is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Utility Infrastructu and BlackRock Credit Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Credit All and BlackRock Utility 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 Utility Infrastructure are associated (or correlated) with BlackRock Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Credit All has no effect on the direction of BlackRock Utility i.e., BlackRock Utility and BlackRock Credit go up and down completely randomly.

Pair Corralation between BlackRock Utility and BlackRock Credit

Considering the 90-day investment horizon BlackRock Utility Infrastructure is expected to generate 1.72 times more return on investment than BlackRock Credit. However, BlackRock Utility is 1.72 times more volatile than BlackRock Credit Allocation. It trades about 0.3 of its potential returns per unit of risk. BlackRock Credit Allocation is currently generating about 0.28 per unit of risk. If you would invest  2,341  in BlackRock Utility Infrastructure on May 7, 2025 and sell it today you would earn a total of  311.00  from holding BlackRock Utility Infrastructure or generate 13.28% return on investment over 90 days.

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

BlackRock Utility Infrastructu  vs.  BlackRock Credit Allocation

BlackRock Utility

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Utility Infrastructure are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite fairly conflicting basic indicators, BlackRock Utility demonstrated solid returns over the last few months and may actually be approaching a breakup point.

BlackRock Credit All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Credit Allocation are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, BlackRock Credit may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with BlackRock Utility and BlackRock Credit

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

The idea behind BlackRock Utility Infrastructure and BlackRock Credit Allocation 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.