Correlation Between CBH and Blackrock Muniholdings
Can any of the company-specific risk be diversified away by investing in both CBH and Blackrock Muniholdings 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 Muniholdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Blackrock Muniholdings Closed, you can compare the effects of market volatilities on CBH and Blackrock Muniholdings 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 Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Blackrock Muniholdings.
Diversification Opportunities for CBH and Blackrock Muniholdings
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBH and Blackrock is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Blackrock Muniholdings Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings 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 Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of CBH i.e., CBH and Blackrock Muniholdings go up and down completely randomly.
Pair Corralation between CBH and Blackrock Muniholdings
Considering the 90-day investment horizon CBH is expected to generate 11.68 times more return on investment than Blackrock Muniholdings. However, CBH is 11.68 times more volatile than Blackrock Muniholdings Closed. It trades about 0.08 of its potential returns per unit of risk. Blackrock Muniholdings Closed is currently generating about 0.09 per unit of risk. If you would invest 835.00 in CBH on August 24, 2024 and sell it today you would earn a total of 924.00 from holding CBH or generate 110.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.11% |
| Values | Daily Returns |
CBH vs. Blackrock Muniholdings Closed
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Blackrock Muniholdings |
CBH and Blackrock Muniholdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Blackrock Muniholdings
The main advantage of trading using opposite CBH and Blackrock Muniholdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Blackrock Muniholdings 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 Muniholdings will offset losses from the drop in Blackrock Muniholdings' long position.| CBH vs. Western Asset Global | CBH vs. Western Asset High | CBH vs. Voya Global Equity | CBH vs. Western Asset Mortgage |
| Blackrock Muniholdings vs. Tekla Healthcare Investors | Blackrock Muniholdings vs. Blackrock Enhanced Capital | Blackrock Muniholdings vs. Tekla Life Sciences | Blackrock Muniholdings vs. Nuveen New York |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |