Correlation Between Flow Capital and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Flow Capital and Blackrock Muni 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 Flow Capital and Blackrock Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flow Capital Corp and Blackrock Muni Intermediate, you can compare the effects of market volatilities on Flow Capital and Blackrock Muni 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 Flow Capital with a short position of Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flow Capital and Blackrock Muni.
Diversification Opportunities for Flow Capital and Blackrock Muni
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Flow and Blackrock is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Flow Capital Corp and Blackrock Muni Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muni Inter and Flow Capital 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 Flow Capital Corp are associated (or correlated) with Blackrock Muni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muni Inter has no effect on the direction of Flow Capital i.e., Flow Capital and Blackrock Muni go up and down completely randomly.
Pair Corralation between Flow Capital and Blackrock Muni
If you would invest 1,209 in Blackrock Muni Intermediate on October 29, 2024 and sell it today you would earn a total of 3.00 from holding Blackrock Muni Intermediate or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flow Capital Corp vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| Flow Capital Corp |
| Blackrock Muni Inter |
Flow Capital and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flow Capital and Blackrock Muni
The main advantage of trading using opposite Flow Capital and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flow Capital position performs unexpectedly, Blackrock Muni 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 Muni will offset losses from the drop in Blackrock Muni's long position.| Flow Capital vs. Guardian Capital Group | Flow Capital vs. Urbana | Flow Capital vs. Princeton Capital | Flow Capital vs. Blackhawk Growth Corp |
| Blackrock Muni vs. John Hancock Income | Blackrock Muni vs. MFS High Income | Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Blackrock Muniholdings Closed |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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