Correlation Between IHIT and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both IHIT and Blackrock Muni 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 Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHIT and Blackrock Muni Intermediate, you can compare the effects of market volatilities on IHIT and Blackrock Muni 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 Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHIT and Blackrock Muni.
Diversification Opportunities for IHIT and Blackrock Muni
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHIT and Blackrock is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding IHIT and Blackrock Muni Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muni Inter 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 Muni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muni Inter has no effect on the direction of IHIT i.e., IHIT and Blackrock Muni go up and down completely randomly.
Pair Corralation between IHIT and Blackrock Muni
If you would invest 1,238 in Blackrock Muni Intermediate on August 24, 2024 and sell it today you would earn a total of 18.00 from holding Blackrock Muni Intermediate or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
IHIT vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackrock Muni Inter |
IHIT and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHIT and Blackrock Muni
The main advantage of trading using opposite IHIT and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHIT position performs unexpectedly, Blackrock Muni 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 Muni will offset losses from the drop in Blackrock Muni's long position.| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Invesco High Income | IHIT vs. Nuveen California Select |
| Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Eaton Vance National | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |