Correlation Between CBH and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both CBH and Blackrock Floating 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 CBH and Blackrock Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Blackrock Floating Rate, you can compare the effects of market volatilities on CBH and Blackrock Floating 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 CBH with a short position of Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Blackrock Floating.
Diversification Opportunities for CBH and Blackrock Floating
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CBH and Blackrock is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Blackrock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Floating Rate and CBH 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 CBH are associated (or correlated) with Blackrock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Floating Rate has no effect on the direction of CBH i.e., CBH and Blackrock Floating go up and down completely randomly.
Pair Corralation between CBH and Blackrock Floating
If you would invest 1,360 in Blackrock Floating Rate on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Blackrock Floating Rate or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
CBH vs. Blackrock Floating Rate
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Floating Rate |
CBH and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Blackrock Floating
The main advantage of trading using opposite CBH and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Blackrock Floating 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 Floating will offset losses from the drop in Blackrock Floating's long position.| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
| Blackrock Floating vs. MFS Investment Grade | Blackrock Floating vs. Eaton Vance National | Blackrock Floating vs. Blackrock Muniholdings Closed | Blackrock Floating vs. Blackrock Muniyield Quality |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |