Correlation Between BlackRock ETF and OBP Capital

Can any of the company-specific risk be diversified away by investing in both BlackRock ETF and OBP Capital 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 ETF and OBP Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BlackRock ETF Trust and OBP Capital, you can compare the effects of market volatilities on BlackRock ETF and OBP Capital 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 ETF with a short position of OBP Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock ETF and OBP Capital.

Diversification Opportunities for BlackRock ETF and OBP Capital

-0.02

Correlation Coefficient

BlackRock ETF  OBP Capital

Good diversification

The 3 months correlation between BlackRock and OBP is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ETF Trust and OBP Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBP Capital and BlackRock ETF 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 ETF Trust are associated (or correlated) with OBP Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBP Capital has no effect on the direction of BlackRock ETF i.e., BlackRock ETF and OBP Capital go up and down completely randomly.

Pair Corralation between BlackRock ETF and OBP Capital

If you would invest  3,233  in BlackRock ETF Trust on September 20, 2024 and sell it today you would earn a total of  79.00  from holding BlackRock ETF Trust or generate 2.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	6.67%
Values	Daily Returns

BlackRock ETF Trust  vs.  OBP Capital

BlackRock ETF Trust

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days BlackRock ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very fragile technical indicators, BlackRock ETF may actually be approaching a critical reversion point that can send shares even higher in January 2025.

OBP Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OBP Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, OBP Capital is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with BlackRock ETF and OBP Capital

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

The idea behind BlackRock ETF Trust and OBP Capital 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.