Correlation Between Bain Capital and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Bain Capital and Blackrock Muniyield 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 Bain Capital and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bain Capital Specialty and Blackrock Muniyield, you can compare the effects of market volatilities on Bain Capital and Blackrock Muniyield 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 Bain Capital with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bain Capital and Blackrock Muniyield.
Diversification Opportunities for Bain Capital and Blackrock Muniyield
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bain and Blackrock is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bain Capital Specialty and Blackrock Muniyield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield and Bain Capital 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 Bain Capital Specialty are associated (or correlated) with Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Bain Capital i.e., Bain Capital and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Bain Capital and Blackrock Muniyield
Given the investment horizon of 90 days Bain Capital Specialty is expected to generate 1.71 times more return on investment than Blackrock Muniyield. However, Bain Capital is 1.71 times more volatile than Blackrock Muniyield. It trades about 0.09 of its potential returns per unit of risk. Blackrock Muniyield is currently generating about 0.05 per unit of risk. If you would invest 1,053 in Bain Capital Specialty on August 24, 2024 and sell it today you would earn a total of 611.00 from holding Bain Capital Specialty or generate 58.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bain Capital Specialty vs. Blackrock Muniyield
Performance |
| Timeline |
| Bain Capital Specialty |
| Blackrock Muniyield |
Bain Capital and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bain Capital and Blackrock Muniyield
The main advantage of trading using opposite Bain Capital and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bain Capital position performs unexpectedly, Blackrock Muniyield 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 Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| Bain Capital vs. Invesco Advantage MIT | Bain Capital vs. Invesco Municipal Trust | Bain Capital vs. Invesco California Value | Bain Capital vs. Victory Capital Holdings |
| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Eaton Vance National | Blackrock Muniyield vs. Blackrock Muniyield Quality | Blackrock Muniyield vs. Munivest Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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