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 Ny, 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
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between CBH and Blackrock is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Blackrock Muniholdings Ny 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 12.74 times more return on investment than Blackrock Muniholdings. However, CBH is 12.74 times more volatile than Blackrock Muniholdings Ny. It trades about 0.08 of its potential returns per unit of risk. Blackrock Muniholdings Ny is currently generating about 0.08 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 922.00 from holding CBH or generate 110.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.8% |
| Values | Daily Returns |
CBH vs. Blackrock Muniholdings Ny
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 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. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
| Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Blackrock Muniyield Quality | Blackrock Muniholdings vs. Munivest Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
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