Correlation Between Aberdeen Total and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Aberdeen Total 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 Aberdeen Total and Blackrock Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Total Dynamic and Blackrock Muni Intermediate, you can compare the effects of market volatilities on Aberdeen Total 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 Aberdeen Total with a short position of Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Total and Blackrock Muni.
Diversification Opportunities for Aberdeen Total and Blackrock Muni
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aberdeen and Blackrock is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Total Dynamic 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 Aberdeen Total 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 Aberdeen Total Dynamic 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 Aberdeen Total i.e., Aberdeen Total and Blackrock Muni go up and down completely randomly.
Pair Corralation between Aberdeen Total and Blackrock Muni
Considering the 90-day investment horizon Aberdeen Total Dynamic is expected to generate 0.87 times more return on investment than Blackrock Muni. However, Aberdeen Total Dynamic is 1.16 times less risky than Blackrock Muni. It trades about 0.11 of its potential returns per unit of risk. Blackrock Muni Intermediate is currently generating about -0.01 per unit of risk. If you would invest 852.00 in Aberdeen Total Dynamic on November 27, 2024 and sell it today you would earn a total of 13.00 from holding Aberdeen Total Dynamic or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Total Dynamic vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| Aberdeen Total Dynamic |
| Blackrock Muni Inter |
Aberdeen Total and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Total and Blackrock Muni
The main advantage of trading using opposite Aberdeen Total and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Total 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.| Aberdeen Total vs. Aberdeen Global Premier | Aberdeen Total vs. Alliancebernstein National Municipal | Aberdeen Total vs. Aberdeen Standard Global | Aberdeen Total vs. Aberdeen Global Dynamic |
| Blackrock Muni vs. Blackrock Muniyield | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniholdings Quality |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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