Correlation Between BlackRock High and Columbia Multi
Can any of the company-specific risk be diversified away by investing in both BlackRock High and Columbia Multi 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 High and Columbia Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock High Yield and Columbia Multi Sector Municipal, you can compare the effects of market volatilities on BlackRock High and Columbia Multi 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 High with a short position of Columbia Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock High and Columbia Multi.
Diversification Opportunities for BlackRock High and Columbia Multi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BlackRock and Columbia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock High Yield and Columbia Multi Sector Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Multi Sector and BlackRock High 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 High Yield are associated (or correlated) with Columbia Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Multi Sector has no effect on the direction of BlackRock High i.e., BlackRock High and Columbia Multi go up and down completely randomly.
Pair Corralation between BlackRock High and Columbia Multi
Given the investment horizon of 90 days BlackRock High Yield is expected to generate 0.81 times more return on investment than Columbia Multi. However, BlackRock High Yield is 1.24 times less risky than Columbia Multi. It trades about 0.24 of its potential returns per unit of risk. Columbia Multi Sector Municipal is currently generating about 0.12 per unit of risk. If you would invest 2,274 in BlackRock High Yield on September 13, 2024 and sell it today you would earn a total of 32.00 from holding BlackRock High Yield or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock High Yield vs. Columbia Multi Sector Municipa
Performance |
| Timeline |
| BlackRock High Yield |
| Columbia Multi Sector |
BlackRock High and Columbia Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock High and Columbia Multi
The main advantage of trading using opposite BlackRock High and Columbia Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock High position performs unexpectedly, Columbia Multi 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 Columbia Multi will offset losses from the drop in Columbia Multi's long position.| BlackRock High vs. BlackRock Intermediate Muni | BlackRock High vs. VanEck Short High | BlackRock High vs. iShares iBonds Dec | BlackRock High vs. SPDR Nuveen Bloomberg |
| Columbia Multi vs. IQ MacKay Municipal | Columbia Multi vs. IQ MacKay Municipal | Columbia Multi vs. American Century Diversified | Columbia Multi vs. Hartford Municipal Opportunities |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |