Correlation Between Vy Blackrock and Small Cap

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

By analyzing existing cross correlation between Vy Blackrock Inflation and Small Cap Special, you can compare the effects of market volatilities on Vy Blackrock and Small Cap 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 Vy Blackrock with a short position of Small Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy Blackrock and Small Cap.

Diversification Opportunities for Vy Blackrock and Small Cap

0.75

Correlation Coefficient

Vy Blackrock  Small Cap

Poor diversification

The 3 months correlation between IBRIX and Small is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Vy Blackrock Inflation and Small Cap Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Special and Vy Blackrock 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 Vy Blackrock Inflation are associated (or correlated) with Small Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Special has no effect on the direction of Vy Blackrock i.e., Vy Blackrock and Small Cap go up and down completely randomly.

Pair Corralation between Vy Blackrock and Small Cap

Assuming the 90 days horizon Vy Blackrock is expected to generate 3.0 times less return on investment than Small Cap. But when comparing it to its historical volatility, Vy Blackrock Inflation is 5.01 times less risky than Small Cap. It trades about 0.21 of its potential returns per unit of risk. Small Cap Special is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,030  in Small Cap Special on May 28, 2025 and sell it today you would earn a total of  99.00  from holding Small Cap Special or generate 9.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Vy Blackrock Inflation  vs.  Small Cap Special

Vy Blackrock Inflation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Blackrock Inflation are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Vy Blackrock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Small Cap Special

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Small Cap Special are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Small Cap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Vy Blackrock and Small Cap

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

The idea behind Vy Blackrock Inflation and Small Cap Special 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 Transaction History module to view history of all your transactions and understand their impact on performance.