Correlation Between Multi-index 2030 and Blackrock Emerging

Can any of the company-specific risk be diversified away by investing in both Multi-index 2030 and Blackrock Emerging 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 Multi-index 2030 and Blackrock Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Multi Index 2030 Lifetime and Blackrock Emerging Markets, you can compare the effects of market volatilities on Multi-index 2030 and Blackrock Emerging 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 Multi-index 2030 with a short position of Blackrock Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi-index 2030 and Blackrock Emerging.

Diversification Opportunities for Multi-index 2030 and Blackrock Emerging

0.98

Correlation Coefficient

Multi-index 2030  Blackrock Emerging

Almost no diversification

The 3 months correlation between Multi-index and Blackrock is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Multi Index 2030 Lifetime and Blackrock Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Emerging and Multi-index 2030 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 Multi Index 2030 Lifetime are associated (or correlated) with Blackrock Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Emerging has no effect on the direction of Multi-index 2030 i.e., Multi-index 2030 and Blackrock Emerging go up and down completely randomly.

Pair Corralation between Multi-index 2030 and Blackrock Emerging

Assuming the 90 days horizon Multi-index 2030 is expected to generate 1.45 times less return on investment than Blackrock Emerging. But when comparing it to its historical volatility, Multi Index 2030 Lifetime is 1.65 times less risky than Blackrock Emerging. It trades about 0.3 of its potential returns per unit of risk. Blackrock Emerging Markets is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  2,354  in Blackrock Emerging Markets on April 28, 2025 and sell it today you would earn a total of  290.00  from holding Blackrock Emerging Markets or generate 12.32% return on investment over 90 days.

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

Multi Index 2030 Lifetime  vs.  Blackrock Emerging Markets

Multi Index 2030

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Index 2030 Lifetime are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Multi-index 2030 may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Blackrock Emerging

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Emerging Markets are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Blackrock Emerging may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Multi-index 2030 and Blackrock Emerging

The main advantage of trading using opposite Multi-index 2030 and Blackrock Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi-index 2030 position performs unexpectedly, Blackrock Emerging 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 Blackrock Emerging will offset losses from the drop in Blackrock Emerging's long position.

The idea behind Multi Index 2030 Lifetime and Blackrock Emerging Markets 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.