Correlation Between IHIT and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both IHIT and Blackrock Muniyield 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 Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHIT and Blackrock Muniyield Quality, you can compare the effects of market volatilities on IHIT and Blackrock Muniyield 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 Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHIT and Blackrock Muniyield.
Diversification Opportunities for IHIT and Blackrock Muniyield
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between IHIT and BlackRock is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding IHIT and Blackrock Muniyield Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of IHIT i.e., IHIT and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between IHIT and Blackrock Muniyield
If you would invest 1,026 in Blackrock Muniyield Quality on August 31, 2024 and sell it today you would earn a total of 32.00 from holding Blackrock Muniyield Quality or generate 3.12% 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 Muniyield Quality
Performance |
| Timeline |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Muniyield |
IHIT and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHIT and Blackrock Muniyield
The main advantage of trading using opposite IHIT and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHIT position performs unexpectedly, Blackrock Muniyield 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 Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Invesco High Income | IHIT vs. Nuveen California Select |
| Blackrock Muniyield vs. John Hancock Income | Blackrock Muniyield vs. MFS High Income | Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Blackrock Muniholdings Closed |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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