Correlation Between BlackRock ESG and MicroAlgo

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

Diversification Opportunities for BlackRock ESG and MicroAlgo

-0.86

Correlation Coefficient

BlackRock ESG  MicroAlgo

Pay attention - limited upside

The 3 months correlation between BlackRock and MicroAlgo is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo 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 MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and MicroAlgo go up and down completely randomly.

Pair Corralation between BlackRock ESG and MicroAlgo

Given the investment horizon of 90 days BlackRock ESG Capital is expected to generate 0.06 times more return on investment than MicroAlgo. However, BlackRock ESG Capital is 17.53 times less risky than MicroAlgo. It trades about 0.31 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.1 per unit of risk. If you would invest  1,576  in BlackRock ESG Capital on April 28, 2025 and sell it today you would earn a total of  58.00  from holding BlackRock ESG Capital or generate 3.68% return on investment over 90 days.

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

BlackRock ESG Capital  vs.  MicroAlgo

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 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BlackRock ESG unveiled solid returns over the last few months and may actually be approaching a breakup point.

MicroAlgo

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with BlackRock ESG and MicroAlgo

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

The idea behind BlackRock ESG Capital and MicroAlgo 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.