Correlation Between Ab Municipal and Blackrock High
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Blackrock High 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 High 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 High Yield, you can compare the effects of market volatilities on Ab Municipal and Blackrock High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Blackrock High.
Diversification Opportunities for Ab Municipal and Blackrock High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUNTX and Blackrock is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Blackrock High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock High Yield has no effect on the direction of Ab Municipal i.e., Ab Municipal and Blackrock High go up and down completely randomly.
Pair Corralation between Ab Municipal and Blackrock High
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.65 times more return on investment than Blackrock High. However, Ab Municipal Bond is 1.53 times less risky than Blackrock High. It trades about 0.32 of its potential returns per unit of risk. Blackrock High Yield is currently generating about 0.11 per unit of risk. If you would invest 1,063 in Ab Municipal Bond on November 4, 2024 and sell it today you would earn a total of 9.00 from holding Ab Municipal Bond or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Blackrock High Yield
Performance |
| Timeline |
| Ab Municipal Bond |
| Blackrock High Yield |
Ab Municipal and Blackrock High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Blackrock High
The main advantage of trading using opposite Ab Municipal and Blackrock High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Blackrock High 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 High will offset losses from the drop in Blackrock High's long position.| Ab Municipal vs. Needham Aggressive Growth | Ab Municipal vs. One Choice Portfolio | Ab Municipal vs. Pace High Yield | Ab Municipal vs. Gugg Actv Invmt |
| Blackrock High vs. Icon Natural Resources | Blackrock High vs. Invesco Energy Fund | Blackrock High vs. Salient Mlp Energy | Blackrock High vs. Fidelity Advisor Energy |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |