Correlation Between Bbh Partner and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Bbh Partner and Bbh Intermediate 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 Bbh Partner and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Partner Fund and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Bbh Partner and Bbh Intermediate 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 Bbh Partner with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Partner and Bbh Intermediate.
Diversification Opportunities for Bbh Partner and Bbh Intermediate
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bbh and Bbh is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Partner Fund and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Bbh Partner 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 Bbh Partner Fund are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Bbh Partner i.e., Bbh Partner and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Bbh Partner and Bbh Intermediate
Assuming the 90 days horizon Bbh Partner Fund is expected to generate 7.43 times more return on investment than Bbh Intermediate. However, Bbh Partner is 7.43 times more volatile than Bbh Intermediate Municipal. It trades about 0.03 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.09 per unit of risk. If you would invest 629.00 in Bbh Partner Fund on August 27, 2024 and sell it today you would earn a total of 110.00 from holding Bbh Partner Fund or generate 17.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Partner Fund vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Bbh Partner Fund |
| Bbh Intermediate Mun |
Bbh Partner and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Partner and Bbh Intermediate
The main advantage of trading using opposite Bbh Partner and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Partner position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Bbh Partner vs. Bbh Limited Duration | Bbh Partner vs. Bbh Limited Duration | Bbh Partner vs. Bbh Partner Fund | Bbh Partner vs. Bbh Intermediate Municipal |
| Bbh Intermediate vs. Prudential High Yield | Bbh Intermediate vs. Siit High Yield | Bbh Intermediate vs. Gmo High Yield | Bbh Intermediate vs. Pace High Yield |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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