Correlation Between BlackRock ESG and Metrospaces

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

Diversification Opportunities for BlackRock ESG and Metrospaces

0.33

Correlation Coefficient

BlackRock ESG  Metrospaces

Weak diversification

The 3 months correlation between BlackRock and Metrospaces is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and Metrospaces in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrospaces 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 Metrospaces. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrospaces has no effect on the direction of BlackRock ESG i.e., BlackRock ESG and Metrospaces go up and down completely randomly.

Pair Corralation between BlackRock ESG and Metrospaces

Given the investment horizon of 90 days BlackRock ESG is expected to generate 895.39 times less return on investment than Metrospaces. But when comparing it to its historical volatility, BlackRock ESG Capital is 529.29 times less risky than Metrospaces. It trades about 0.21 of its potential returns per unit of risk. Metrospaces is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Metrospaces on May 2, 2025 and sell it today you would earn a total of  0.00  from holding Metrospaces or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

BlackRock ESG Capital  vs.  Metrospaces

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 16 (%) 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 August 2025.

Metrospaces

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Metrospaces are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Metrospaces exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BlackRock ESG and Metrospaces

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

The idea behind BlackRock ESG Capital and Metrospaces 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.