Correlation Between IHIT and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both IHIT 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 IHIT and Blackrock Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHIT and Blackrock Floating Rate, you can compare the effects of market volatilities on IHIT 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 IHIT with a short position of Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHIT and Blackrock Floating.
Diversification Opportunities for IHIT and Blackrock Floating
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHIT and Blackrock is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding IHIT 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 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 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 IHIT i.e., IHIT and Blackrock Floating go up and down completely randomly.
Pair Corralation between IHIT and Blackrock Floating
Given the investment horizon of 90 days IHIT is expected to under-perform the Blackrock Floating. But the etf apears to be less risky and, when comparing its historical volatility, IHIT is 1.02 times less risky than Blackrock Floating. The etf trades about -0.07 of its potential returns per unit of risk. The Blackrock Floating Rate is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Blackrock Floating Rate on September 1, 2024 and sell it today you would earn a total of 398.00 from holding Blackrock Floating Rate or generate 39.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
IHIT vs. Blackrock Floating Rate
Performance |
| Timeline |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Floating Rate |
IHIT and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHIT and Blackrock Floating
The main advantage of trading using opposite IHIT and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHIT 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.| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Invesco High Income | IHIT vs. Nuveen California Select |
| Blackrock Floating vs. Pioneer Floating Rate | Blackrock Floating vs. BlackRock Floating Rate | Blackrock Floating vs. Blackrock Muni Intermediate | Blackrock Floating vs. Eaton Vance Senior |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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