Correlation Between Bbh Select and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Bbh Select 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 Select 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 Select Series and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Bbh Select 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 Select with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Select and Bbh Intermediate.
Diversification Opportunities for Bbh Select and Bbh Intermediate
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bbh and Bbh is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Select Series 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 Select 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 Select Series 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 Select i.e., Bbh Select and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Bbh Select and Bbh Intermediate
Assuming the 90 days horizon Bbh Select Series is expected to generate 5.97 times more return on investment than Bbh Intermediate. However, Bbh Select is 5.97 times more volatile than Bbh Intermediate Municipal. It trades about 0.08 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 860.00 in Bbh Select Series on August 27, 2024 and sell it today you would earn a total of 426.00 from holding Bbh Select Series or generate 49.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Select Series vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Bbh Select Series |
| Bbh Intermediate Mun |
Bbh Select and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Select and Bbh Intermediate
The main advantage of trading using opposite Bbh Select and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Select 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 Select vs. Us Vector Equity | Bbh Select vs. Ms Global Fixed | Bbh Select vs. Rbc Global Equity | Bbh Select vs. Artisan Select Equity |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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