Correlation Between Cion Investment and Blackrock Enhanced

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

By analyzing existing cross correlation between Cion Investment Corp and Blackrock Enhanced Equity, you can compare the effects of market volatilities on Cion Investment and Blackrock Enhanced 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 Cion Investment with a short position of Blackrock Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cion Investment and Blackrock Enhanced.

Diversification Opportunities for Cion Investment and Blackrock Enhanced

-0.25

Correlation Coefficient

Cion Investment  Blackrock Enhanced

Very good diversification

The 3 months correlation between Cion and Blackrock is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cion Investment Corp and Blackrock Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Enhanced Equity and Cion Investment 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 Cion Investment Corp are associated (or correlated) with Blackrock Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Enhanced Equity has no effect on the direction of Cion Investment i.e., Cion Investment and Blackrock Enhanced go up and down completely randomly.

Pair Corralation between Cion Investment and Blackrock Enhanced

Given the investment horizon of 90 days Cion Investment is expected to generate 2.03 times less return on investment than Blackrock Enhanced. In addition to that, Cion Investment is 1.25 times more volatile than Blackrock Enhanced Equity. It trades about 0.05 of its total potential returns per unit of risk. Blackrock Enhanced Equity is currently generating about 0.12 per unit of volatility. If you would invest  823.00  in Blackrock Enhanced Equity on September 12, 2024 and sell it today you would earn a total of  49.00  from holding Blackrock Enhanced Equity or generate 5.95% return on investment over 90 days.

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

Cion Investment Corp  vs.  Blackrock Enhanced Equity

Cion Investment Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Cion Investment Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Cion Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Blackrock Enhanced Equity

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Enhanced Equity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively steady fundamental indicators, Blackrock Enhanced is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Cion Investment and Blackrock Enhanced

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

The idea behind Cion Investment Corp and Blackrock Enhanced Equity 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.