Correlation Between Federated Premier and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both Federated Premier and Blackrock Floating 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 Federated Premier and Blackrock Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Premier Municipal and Blackrock Floating Rate, you can compare the effects of market volatilities on Federated Premier and Blackrock Floating 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 Federated Premier with a short position of Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and Blackrock Floating.
Diversification Opportunities for Federated Premier and Blackrock Floating
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Blackrock is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal and Blackrock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Floating Rate and Federated Premier 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 Federated Premier Municipal are associated (or correlated) with Blackrock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Floating Rate has no effect on the direction of Federated Premier i.e., Federated Premier and Blackrock Floating go up and down completely randomly.
Pair Corralation between Federated Premier and Blackrock Floating
Considering the 90-day investment horizon Federated Premier Municipal is expected to under-perform the Blackrock Floating. In addition to that, Federated Premier is 1.1 times more volatile than Blackrock Floating Rate. It trades about -0.1 of its total potential returns per unit of risk. Blackrock Floating Rate is currently generating about 0.09 per unit of volatility. If you would invest 1,370 in Blackrock Floating Rate on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Blackrock Floating Rate or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Premier Municipal vs. Blackrock Floating Rate
Performance |
| Timeline |
| Federated Premier |
| Blackrock Floating Rate |
Federated Premier and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and Blackrock Floating
The main advantage of trading using opposite Federated Premier and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier position performs unexpectedly, Blackrock Floating 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 Floating will offset losses from the drop in Blackrock Floating's long position.| Federated Premier vs. Dws Strategic Municipal | Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance Municipal | Federated Premier vs. DTF Tax Free |
| Blackrock Floating vs. Eaton Vance Floating | Blackrock Floating vs. NXG NextGen Infrastructure | Blackrock Floating vs. GAMCO Natural Resources | Blackrock Floating vs. MFS Investment Grade |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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