Correlation Between Invesco High and Blackrock Munivest
Can any of the company-specific risk be diversified away by investing in both Invesco High and Blackrock Munivest 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 Invesco High and Blackrock Munivest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco High Income and Blackrock Munivest, you can compare the effects of market volatilities on Invesco High and Blackrock Munivest 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 Invesco High with a short position of Blackrock Munivest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco High and Blackrock Munivest.
Diversification Opportunities for Invesco High and Blackrock Munivest
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invesco and Blackrock is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Invesco High Income and Blackrock Munivest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Munivest and Invesco 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 Invesco High Income are associated (or correlated) with Blackrock Munivest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Munivest has no effect on the direction of Invesco High i.e., Invesco High and Blackrock Munivest go up and down completely randomly.
Pair Corralation between Invesco High and Blackrock Munivest
Given the investment horizon of 90 days Invesco High Income is expected to generate 0.77 times more return on investment than Blackrock Munivest. However, Invesco High Income is 1.3 times less risky than Blackrock Munivest. It trades about 0.1 of its potential returns per unit of risk. Blackrock Munivest is currently generating about 0.05 per unit of risk. If you would invest 649.00 in Invesco High Income on August 26, 2024 and sell it today you would earn a total of 105.00 from holding Invesco High Income or generate 16.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco High Income vs. Blackrock Munivest
Performance |
| Timeline |
| Invesco High Income |
| Blackrock Munivest |
Invesco High and Blackrock Munivest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco High and Blackrock Munivest
The main advantage of trading using opposite Invesco High and Blackrock Munivest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco High position performs unexpectedly, Blackrock Munivest 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 Munivest will offset losses from the drop in Blackrock Munivest's long position.| Invesco High vs. MFS Investment Grade | Invesco High vs. Eaton Vance National | Invesco High vs. Nuveen California Select | Invesco High vs. Federated Premier Municipal |
| Blackrock Munivest vs. MFS Investment Grade | Blackrock Munivest vs. Eaton Vance National | Blackrock Munivest vs. Blackrock Muniholdings Closed | Blackrock Munivest vs. Blackrock Muniyield Quality |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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