Correlation Between CBH and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both CBH and Blackrock Muniyield 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 Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBH and Blackrock Muniyield Quality, you can compare the effects of market volatilities on CBH and Blackrock Muniyield 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 Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBH and Blackrock Muniyield.
Diversification Opportunities for CBH and Blackrock Muniyield
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBH and Blackrock is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CBH and Blackrock Muniyield Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of CBH i.e., CBH and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between CBH and Blackrock Muniyield
If you would invest 1,125 in Blackrock Muniyield Quality on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Blackrock Muniyield Quality or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CBH vs. Blackrock Muniyield Quality
Performance |
| Timeline |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Muniyield |
CBH and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBH and Blackrock Muniyield
The main advantage of trading using opposite CBH and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBH position performs unexpectedly, Blackrock Muniyield 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 Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| CBH vs. Eaton Vance National | CBH vs. Invesco High Income | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select |
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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.
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