Correlation Between BlackRock New and CBH
Can any of the company-specific risk be diversified away by investing in both BlackRock New and CBH 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 New and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock New York and CBH, you can compare the effects of market volatilities on BlackRock New and CBH 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 New with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock New and CBH.
Diversification Opportunities for BlackRock New and CBH
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BlackRock and CBH is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock New York and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and BlackRock New 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 New York are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of BlackRock New i.e., BlackRock New and CBH go up and down completely randomly.
Pair Corralation between BlackRock New and CBH
Considering the 90-day investment horizon BlackRock New is expected to generate 1.16 times less return on investment than CBH. In addition to that, BlackRock New is 1.36 times more volatile than CBH. It trades about 0.03 of its total potential returns per unit of risk. CBH is currently generating about 0.05 per unit of volatility. If you would invest 815.00 in CBH on August 31, 2024 and sell it today you would earn a total of 104.00 from holding CBH or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.82% |
| Values | Daily Returns |
BlackRock New York vs. CBH
Performance |
| Timeline |
| BlackRock New York |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BlackRock New and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock New and CBH
The main advantage of trading using opposite BlackRock New and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock New position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| BlackRock New vs. Invesco Trust For | BlackRock New vs. Pimco New York | BlackRock New vs. Pimco New York | BlackRock New vs. Blackrock Muniholdings Ny |
| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |