Correlation Between Blackrock Municipal and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Blackrock Municipal and Cohen Steers 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 Municipal and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Municipal Target and Cohen Steers Qualityome, you can compare the effects of market volatilities on Blackrock Municipal and Cohen Steers 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 Municipal with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Municipal and Cohen Steers.
Diversification Opportunities for Blackrock Municipal and Cohen Steers
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Cohen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Municipal Target and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome and Blackrock Municipal 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 Municipal Target are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Qualityome has no effect on the direction of Blackrock Municipal i.e., Blackrock Municipal and Cohen Steers go up and down completely randomly.
Pair Corralation between Blackrock Municipal and Cohen Steers
Considering the 90-day investment horizon Blackrock Municipal is expected to generate 5.9 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Blackrock Municipal Target is 4.13 times less risky than Cohen Steers. It trades about 0.03 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,348 in Cohen Steers Qualityome on September 3, 2024 and sell it today you would earn a total of 45.00 from holding Cohen Steers Qualityome or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Municipal Target vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Blackrock Municipal |
| Cohen Steers Qualityome |
Blackrock Municipal and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Municipal and Cohen Steers
The main advantage of trading using opposite Blackrock Municipal and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Municipal position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Blackrock Municipal vs. Nuveen Municipalome | Blackrock Municipal vs. Platinum Asia Investments | Blackrock Municipal vs. Eaton Vance New | Blackrock Municipal vs. Nuveen New York |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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