Correlation Between CBH and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both CBH and Munivest Fund 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 Munivest Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Munivest Fund, you can compare the effects of market volatilities on CBH and Munivest Fund 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 Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Munivest Fund.
Diversification Opportunities for CBH and Munivest Fund
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBH and Munivest is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of CBH i.e., CBH and Munivest Fund go up and down completely randomly.
Pair Corralation between CBH and Munivest Fund
If you would invest 718.00 in Munivest Fund on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Munivest Fund or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CBH vs. Munivest Fund
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Excellent
| Munivest Fund |
CBH and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Munivest Fund
The main advantage of trading using opposite CBH and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
| Munivest Fund vs. Gabelli Global Small | Munivest Fund vs. MFS Investment Grade | Munivest Fund vs. Eaton Vance National | Munivest Fund vs. GAMCO Natural Resources |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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