Correlation Between Invesco Quality and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Invesco Quality 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 Invesco Quality and Blackrock Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Quality Municipal and Blackrock Muni Intermediate, you can compare the effects of market volatilities on Invesco Quality 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 Invesco Quality with a short position of Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Quality and Blackrock Muni.
Diversification Opportunities for Invesco Quality and Blackrock Muni
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Invesco and Blackrock is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Quality Municipal 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 Invesco Quality 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 Quality Municipal 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 Invesco Quality i.e., Invesco Quality and Blackrock Muni go up and down completely randomly.
Pair Corralation between Invesco Quality and Blackrock Muni
Considering the 90-day investment horizon Invesco Quality is expected to generate 1.16 times less return on investment than Blackrock Muni. In addition to that, Invesco Quality is 1.02 times more volatile than Blackrock Muni Intermediate. It trades about 0.09 of its total potential returns per unit of risk. Blackrock Muni Intermediate is currently generating about 0.11 per unit of volatility. If you would invest 1,080 in Blackrock Muni Intermediate on August 27, 2024 and sell it today you would earn a total of 176.00 from holding Blackrock Muni Intermediate or generate 16.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Quality Municipal vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| Invesco Quality Municipal |
| Blackrock Muni Inter |
Invesco Quality and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Quality and Blackrock Muni
The main advantage of trading using opposite Invesco Quality and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Quality 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.| Invesco Quality vs. PowerUp Acquisition Corp | Invesco Quality vs. Aurora Innovation | Invesco Quality vs. HUMANA INC | Invesco Quality vs. Aquagold International |
| Blackrock Muni vs. Blackrock Muniyield | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniholdings 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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