Correlation Between Blackrock Floating and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Blackrock Floating and Cohen Steers 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 Cohen Steers 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 Cohen Steers Qualityome, you can compare the effects of market volatilities on Blackrock Floating and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Floating and Cohen Steers.
Diversification Opportunities for Blackrock Floating and Cohen Steers
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Cohen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Floating Rate and Cohen Steers Qualityome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Qualityome 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Qualityome has no effect on the direction of Blackrock Floating i.e., Blackrock Floating and Cohen Steers go up and down completely randomly.
Pair Corralation between Blackrock Floating and Cohen Steers
Considering the 90-day investment horizon Blackrock Floating Rate is expected to generate 0.46 times more return on investment than Cohen Steers. However, Blackrock Floating Rate is 2.18 times less risky than Cohen Steers. It trades about 0.15 of its potential returns per unit of risk. Cohen Steers Qualityome is currently generating about -0.01 per unit of risk. If you would invest 1,360 in Blackrock Floating Rate on August 24, 2024 and sell it today you would earn a total of 32.00 from holding Blackrock Floating Rate or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Floating Rate vs. Cohen Steers Qualityome
Performance |
| Timeline |
| Blackrock Floating Rate |
| Cohen Steers Qualityome |
Blackrock Floating and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Floating and Cohen Steers
The main advantage of trading using opposite Blackrock Floating and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Floating position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Blackrock Floating vs. MFS Investment Grade | Blackrock Floating vs. Eaton Vance National | Blackrock Floating vs. Blackrock Muniyield Quality | Blackrock Floating vs. Munivest Fund |
| Cohen Steers vs. MFS Investment Grade | Cohen Steers vs. Eaton Vance National | Cohen Steers vs. Blackrock Muniyield Quality | Cohen Steers vs. Munivest Fund |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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