Correlation Between First Trust and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both First Trust 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 First Trust and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Energy and Blackrock Muniyield New, you can compare the effects of market volatilities on First Trust 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 First Trust with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Blackrock Muniyield.
Diversification Opportunities for First Trust and Blackrock Muniyield
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Blackrock is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Energy and Blackrock Muniyield New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield New and First Trust 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 First Trust Energy 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 New has no effect on the direction of First Trust i.e., First Trust and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between First Trust and Blackrock Muniyield
If you would invest 1,027 in Blackrock Muniyield New on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Blackrock Muniyield New or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
First Trust Energy vs. Blackrock Muniyield New
Performance |
| Timeline |
| First Trust Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Muniyield New |
First Trust and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Blackrock Muniyield
The main advantage of trading using opposite First Trust and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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.| First Trust vs. Eagle Point Income | First Trust vs. European Equity Closed | First Trust vs. John Hancock Income | First Trust vs. First Trust Intermediate |
| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Invesco High Income | Blackrock Muniyield vs. Eaton Vance National | Blackrock Muniyield vs. Federated Premier Municipal |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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