Correlation Between BlackRock ESG and Catalyst/aspect Enhanced

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

By analyzing existing cross correlation between BlackRock ESG Capital and Catalystaspect Enhanced Multi Asset, you can compare the effects of market volatilities on BlackRock ESG and Catalyst/aspect Enhanced 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 ESG with a short position of Catalyst/aspect Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ESG and Catalyst/aspect Enhanced.

Diversification Opportunities for BlackRock ESG and Catalyst/aspect Enhanced

0.8

Correlation Coefficient

BlackRock ESG  Catalyst/aspect Enhanced

Very poor diversification

The 3 months correlation between BlackRock and Catalyst/aspect is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and Catalystaspect Enhanced Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/aspect Enhanced and BlackRock ESG 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 ESG Capital are associated (or correlated) with Catalyst/aspect Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/aspect Enhanced has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and Catalyst/aspect Enhanced go up and down completely randomly.

Pair Corralation between BlackRock ESG and Catalyst/aspect Enhanced

Given the investment horizon of 90 days BlackRock ESG is expected to generate 1.46 times less return on investment than Catalyst/aspect Enhanced. But when comparing it to its historical volatility, BlackRock ESG Capital is 1.09 times less risky than Catalyst/aspect Enhanced. It trades about 0.19 of its potential returns per unit of risk. Catalystaspect Enhanced Multi Asset is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  903.00  in Catalystaspect Enhanced Multi Asset on July 6, 2025 and sell it today you would earn a total of  101.00  from holding Catalystaspect Enhanced Multi Asset or generate 11.18% return on investment over 90 days.

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

BlackRock ESG Capital  vs.  Catalystaspect Enhanced Multi

BlackRock ESG Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Capital are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BlackRock ESG may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Catalyst/aspect Enhanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystaspect Enhanced Multi Asset are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Catalyst/aspect Enhanced may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with BlackRock ESG and Catalyst/aspect Enhanced

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

The idea behind BlackRock ESG Capital and Catalystaspect Enhanced Multi Asset 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .