Correlation Between Blackrock Floating and CBH
Can any of the company-specific risk be diversified away by investing in both Blackrock Floating and CBH 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 Blackrock Floating and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Floating Rate and CBH, you can compare the effects of market volatilities on Blackrock Floating and CBH 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 Blackrock Floating with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Floating and CBH.
Diversification Opportunities for Blackrock Floating and CBH
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and CBH is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Floating Rate and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Blackrock Floating 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 Blackrock Floating Rate are associated (or correlated) with CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Blackrock Floating i.e., Blackrock Floating and CBH go up and down completely randomly.
Pair Corralation between Blackrock Floating and CBH
If you would invest 1,360 in Blackrock Floating Rate on August 24, 2024 and sell it today you would earn a total of 29.00 from holding Blackrock Floating Rate or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
Blackrock Floating Rate vs. CBH
Performance |
| Timeline |
| Blackrock Floating Rate |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackrock Floating and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Floating and CBH
The main advantage of trading using opposite Blackrock Floating and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Floating position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| Blackrock Floating vs. MFS Investment Grade | Blackrock Floating vs. Eaton Vance National | Blackrock Floating vs. Blackrock Muniholdings Closed | Blackrock Floating vs. Blackrock Muniyield Quality |
| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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