Correlation Between BlackRock Intermediate and Mairs Power
Can any of the company-specific risk be diversified away by investing in both BlackRock Intermediate and Mairs Power 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 BlackRock Intermediate and Mairs Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Intermediate Muni and Mairs Power Minnesota, you can compare the effects of market volatilities on BlackRock Intermediate and Mairs Power 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 BlackRock Intermediate with a short position of Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Intermediate and Mairs Power.
Diversification Opportunities for BlackRock Intermediate and Mairs Power
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BlackRock and Mairs is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Intermediate Muni and Mairs Power Minnesota in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Minnesota and BlackRock Intermediate 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 BlackRock Intermediate Muni are associated (or correlated) with Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Minnesota has no effect on the direction of BlackRock Intermediate i.e., BlackRock Intermediate and Mairs Power go up and down completely randomly.
Pair Corralation between BlackRock Intermediate and Mairs Power
Given the investment horizon of 90 days BlackRock Intermediate Muni is expected to generate 0.96 times more return on investment than Mairs Power. However, BlackRock Intermediate Muni is 1.04 times less risky than Mairs Power. It trades about 0.03 of its potential returns per unit of risk. Mairs Power Minnesota is currently generating about 0.02 per unit of risk. If you would invest 2,354 in BlackRock Intermediate Muni on October 26, 2024 and sell it today you would earn a total of 11.00 from holding BlackRock Intermediate Muni or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock Intermediate Muni vs. Mairs Power Minnesota
Performance |
| Timeline |
| BlackRock Intermediate |
| Mairs Power Minnesota |
BlackRock Intermediate and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Intermediate and Mairs Power
The main advantage of trading using opposite BlackRock Intermediate and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Intermediate position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power's long position.| BlackRock Intermediate vs. BlackRock High Yield | BlackRock Intermediate vs. iShares iBonds Dec | BlackRock Intermediate vs. iShares Short Maturity | BlackRock Intermediate vs. iShares iBonds Dec |
| Mairs Power vs. BlackRock Intermediate Muni | Mairs Power vs. IQ MacKay Municipal | Mairs Power vs. Overlay Shares Municipal | Mairs Power vs. IQ MacKay Municipal |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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