Correlation Between BZDYF and SPDR Nuveen
Can any of the company-specific risk be diversified away by investing in both BZDYF and SPDR Nuveen 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 BZDYF and SPDR Nuveen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BZDYF and SPDR Nuveen Municipal, you can compare the effects of market volatilities on BZDYF and SPDR Nuveen 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 BZDYF with a short position of SPDR Nuveen. Check out your portfolio center. Please also check ongoing floating volatility patterns of BZDYF and SPDR Nuveen.
Diversification Opportunities for BZDYF and SPDR Nuveen
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BZDYF and SPDR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding BZDYF and SPDR Nuveen Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Nuveen Municipal and BZDYF 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 BZDYF are associated (or correlated) with SPDR Nuveen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Nuveen Municipal has no effect on the direction of BZDYF i.e., BZDYF and SPDR Nuveen go up and down completely randomly.
Pair Corralation between BZDYF and SPDR Nuveen
Assuming the 90 days horizon BZDYF is expected to generate 2.87 times more return on investment than SPDR Nuveen. However, BZDYF is 2.87 times more volatile than SPDR Nuveen Municipal. It trades about 0.09 of its potential returns per unit of risk. SPDR Nuveen Municipal is currently generating about 0.09 per unit of risk. If you would invest 2,815 in BZDYF on August 26, 2024 and sell it today you would earn a total of 422.00 from holding BZDYF or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 74.77% |
| Values | Daily Returns |
BZDYF vs. SPDR Nuveen Municipal
Performance |
| Timeline |
| BZDYF |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR Nuveen Municipal |
BZDYF and SPDR Nuveen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BZDYF and SPDR Nuveen
The main advantage of trading using opposite BZDYF and SPDR Nuveen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BZDYF position performs unexpectedly, SPDR Nuveen 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 SPDR Nuveen will offset losses from the drop in SPDR Nuveen's long position.| BZDYF vs. FT Vest Equity | BZDYF vs. Zillow Group Class | BZDYF vs. Northern Lights | BZDYF vs. VanEck Vectors Moodys |
| SPDR Nuveen vs. BlackRock Intermediate Muni | SPDR Nuveen vs. SSGA Active Trust | SPDR Nuveen vs. SPDR MarketAxess Investment | SPDR Nuveen vs. SSGA Active Trust |
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 Correlations module to find global opportunities by holding instruments from different markets.
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