Correlation Between IHIT and BlackRock Capital
Can any of the company-specific risk be diversified away by investing in both IHIT and BlackRock Capital 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 IHIT and BlackRock Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHIT and BlackRock Capital Allocation, you can compare the effects of market volatilities on IHIT and BlackRock Capital 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 IHIT with a short position of BlackRock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHIT and BlackRock Capital.
Diversification Opportunities for IHIT and BlackRock Capital
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHIT and BlackRock is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding IHIT and BlackRock Capital Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Capital and IHIT 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 IHIT are associated (or correlated) with BlackRock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Capital has no effect on the direction of IHIT i.e., IHIT and BlackRock Capital go up and down completely randomly.
Pair Corralation between IHIT and BlackRock Capital
If you would invest 1,554 in BlackRock Capital Allocation on August 28, 2024 and sell it today you would earn a total of 61.00 from holding BlackRock Capital Allocation or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
IHIT vs. BlackRock Capital Allocation
Performance |
| Timeline |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BlackRock Capital |
IHIT and BlackRock Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHIT and BlackRock Capital
The main advantage of trading using opposite IHIT and BlackRock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHIT position performs unexpectedly, BlackRock Capital 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 Capital will offset losses from the drop in BlackRock Capital's long position.| IHIT vs. MFS Investment Grade | IHIT vs. Invesco High Income | IHIT vs. Eaton Vance National | IHIT vs. Nuveen California Select |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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