Correlation Between BlackRock ESG and CSWI Old

Can any of the company-specific risk be diversified away by investing in both BlackRock ESG and CSWI Old 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 CSWI Old 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 CSWI Old, you can compare the effects of market volatilities on BlackRock ESG and CSWI Old 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 CSWI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ESG and CSWI Old.

Diversification Opportunities for BlackRock ESG and CSWI Old

0.35

Correlation Coefficient

BlackRock ESG  CSWI Old

Weak diversification

The 3 months correlation between BlackRock and CSWI is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and CSWI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSWI Old 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 CSWI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSWI Old has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and CSWI Old go up and down completely randomly.

Pair Corralation between BlackRock ESG and CSWI Old

Given the investment horizon of 90 days BlackRock ESG Capital is expected to generate 0.3 times more return on investment than CSWI Old. However, BlackRock ESG Capital is 3.36 times less risky than CSWI Old. It trades about 0.24 of its potential returns per unit of risk. CSWI Old is currently generating about -0.05 per unit of risk. If you would invest  1,486  in BlackRock ESG Capital on May 8, 2025 and sell it today you would earn a total of  151.00  from holding BlackRock ESG Capital or generate 10.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	35.48%
Values	Daily Returns

BlackRock ESG Capital  vs.  CSWI Old

BlackRock ESG Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Capital are ranked lower than 18 (%) 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 September 2025.

CSWI Old

Risk-Adjusted Performance

Weakest

Over the last 90 days CSWI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with BlackRock ESG and CSWI Old

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

The idea behind BlackRock ESG Capital and CSWI Old 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.