Correlation Between Ab Municipal and Blackrock All-cap
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Blackrock All-cap 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 Ab Municipal and Blackrock All-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Blackrock All Cap Energy, you can compare the effects of market volatilities on Ab Municipal and Blackrock All-cap 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 Ab Municipal with a short position of Blackrock All-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Blackrock All-cap.
Diversification Opportunities for Ab Municipal and Blackrock All-cap
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUNTX and Blackrock is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Blackrock All Cap Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock All Cap and Ab Municipal 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 Ab Municipal Bond are associated (or correlated) with Blackrock All-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock All Cap has no effect on the direction of Ab Municipal i.e., Ab Municipal and Blackrock All-cap go up and down completely randomly.
Pair Corralation between Ab Municipal and Blackrock All-cap
Assuming the 90 days horizon Ab Municipal is expected to generate 8.52 times less return on investment than Blackrock All-cap. But when comparing it to its historical volatility, Ab Municipal Bond is 5.54 times less risky than Blackrock All-cap. It trades about 0.39 of its potential returns per unit of risk. Blackrock All Cap Energy is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 1,224 in Blackrock All Cap Energy on October 26, 2024 and sell it today you would earn a total of 91.00 from holding Blackrock All Cap Energy or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Blackrock All Cap Energy
Performance |
| Timeline |
| Ab Municipal Bond |
| Blackrock All Cap |
Ab Municipal and Blackrock All-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Blackrock All-cap
The main advantage of trading using opposite Ab Municipal and Blackrock All-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Blackrock All-cap 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 All-cap will offset losses from the drop in Blackrock All-cap's long position.| Ab Municipal vs. Aig Government Money | Ab Municipal vs. Prudential Government Money | Ab Municipal vs. Short Term Government Fund | Ab Municipal vs. Ridgeworth Seix Government |
| Blackrock All-cap vs. Ab Municipal Bond | Blackrock All-cap vs. Alpine Ultra Short | Blackrock All-cap vs. Franklin Adjustable Government | Blackrock All-cap vs. Transamerica Intermediate Muni |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |