Correlation Between Blackrock Enhanced and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Blackrock Enhanced 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 Blackrock Enhanced and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Enhanced Equity and Blackrock Muniyield New, you can compare the effects of market volatilities on Blackrock Enhanced 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 Blackrock Enhanced with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Enhanced and Blackrock Muniyield.
Diversification Opportunities for Blackrock Enhanced and Blackrock Muniyield
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and BlackRock is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Enhanced Equity and Blackrock Muniyield New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield New and Blackrock Enhanced 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 Blackrock Enhanced Equity 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 New has no effect on the direction of Blackrock Enhanced i.e., Blackrock Enhanced and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Blackrock Enhanced and Blackrock Muniyield
Considering the 90-day investment horizon Blackrock Enhanced Equity is expected to generate 1.39 times more return on investment than Blackrock Muniyield. However, Blackrock Enhanced is 1.39 times more volatile than Blackrock Muniyield New. It trades about 0.15 of its potential returns per unit of risk. Blackrock Muniyield New is currently generating about 0.09 per unit of risk. If you would invest 836.00 in Blackrock Enhanced Equity on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Blackrock Enhanced Equity or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Enhanced Equity vs. Blackrock Muniyield New
Performance |
| Timeline |
| Blackrock Enhanced Equity |
| Blackrock Muniyield New |
Blackrock Enhanced and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Enhanced and Blackrock Muniyield
The main advantage of trading using opposite Blackrock Enhanced and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Enhanced 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.| Blackrock Enhanced vs. BlackRock Energy and | Blackrock Enhanced vs. BlackRock Capital Allocation | Blackrock Enhanced vs. BlackRock Utility Infrastructure | Blackrock Enhanced vs. Blackrock Enhanced Capital |
| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Invesco High Income | Blackrock Muniyield vs. Eaton Vance National | Blackrock Muniyield vs. Federated Premier Municipal |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |