Correlation Between Blackrock Secured and High-yield Municipal
Can any of the company-specific risk be diversified away by investing in both Blackrock Secured and High-yield Municipal 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 Secured and High-yield Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Secured Credit and High Yield Municipal Fund, you can compare the effects of market volatilities on Blackrock Secured and High-yield Municipal 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 Secured with a short position of High-yield Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Secured and High-yield Municipal.
Diversification Opportunities for Blackrock Secured and High-yield Municipal
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and High-yield is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Secured Credit and High Yield Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Yield Municipal and Blackrock Secured 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 Secured Credit are associated (or correlated) with High-yield Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Yield Municipal has no effect on the direction of Blackrock Secured i.e., Blackrock Secured and High-yield Municipal go up and down completely randomly.
Pair Corralation between Blackrock Secured and High-yield Municipal
Assuming the 90 days horizon Blackrock Secured Credit is expected to generate 0.84 times more return on investment than High-yield Municipal. However, Blackrock Secured Credit is 1.19 times less risky than High-yield Municipal. It trades about 0.11 of its potential returns per unit of risk. High Yield Municipal Fund is currently generating about 0.07 per unit of risk. If you would invest 783.00 in Blackrock Secured Credit on August 26, 2024 and sell it today you would earn a total of 113.00 from holding Blackrock Secured Credit or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Secured Credit vs. High Yield Municipal Fund
Performance |
| Timeline |
| Blackrock Secured Credit |
| High Yield Municipal |
Blackrock Secured and High-yield Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Secured and High-yield Municipal
The main advantage of trading using opposite Blackrock Secured and High-yield Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Secured position performs unexpectedly, High-yield Municipal 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 High-yield Municipal will offset losses from the drop in High-yield Municipal's long position.| Blackrock Secured vs. Blackrock California Municipal | Blackrock Secured vs. Blackrock Balanced Capital | Blackrock Secured vs. Blackrock Eurofund Class | Blackrock Secured vs. Blackrock Funds |
| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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