Correlation Between DWS Municipal and BlackRock Floating
Can any of the company-specific risk be diversified away by investing in both DWS Municipal and BlackRock Floating 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 DWS Municipal and BlackRock Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DWS Municipal Income and BlackRock Floating Rate, you can compare the effects of market volatilities on DWS Municipal and BlackRock Floating 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 DWS Municipal with a short position of BlackRock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of DWS Municipal and BlackRock Floating.
Diversification Opportunities for DWS Municipal and BlackRock Floating
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DWS and BlackRock is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding DWS Municipal Income and BlackRock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Floating Rate and DWS Municipal 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 DWS Municipal Income are associated (or correlated) with BlackRock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Floating Rate has no effect on the direction of DWS Municipal i.e., DWS Municipal and BlackRock Floating go up and down completely randomly.
Pair Corralation between DWS Municipal and BlackRock Floating
Considering the 90-day investment horizon DWS Municipal Income is expected to generate 1.09 times more return on investment than BlackRock Floating. However, DWS Municipal is 1.09 times more volatile than BlackRock Floating Rate. It trades about 0.13 of its potential returns per unit of risk. BlackRock Floating Rate is currently generating about 0.06 per unit of risk. If you would invest 950.00 in DWS Municipal Income on November 9, 2024 and sell it today you would earn a total of 13.00 from holding DWS Municipal Income or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DWS Municipal Income vs. BlackRock Floating Rate
Performance |
| Timeline |
| DWS Municipal Income |
| BlackRock Floating Rate |
DWS Municipal and BlackRock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DWS Municipal and BlackRock Floating
The main advantage of trading using opposite DWS Municipal and BlackRock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DWS Municipal position performs unexpectedly, BlackRock Floating 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 Floating will offset losses from the drop in BlackRock Floating's long position.| DWS Municipal vs. DTF Tax Free | DWS Municipal vs. Blackrock Muniyield Quality | DWS Municipal vs. Blackrock Muni Intermediate | DWS Municipal vs. Blackrock Muniholdings Quality |
| BlackRock Floating vs. Nuveen Mortgage Opportunity | BlackRock Floating vs. Eaton Vance Senior | BlackRock Floating vs. Pioneer Floating Rate | BlackRock Floating vs. Eaton Vance Floating |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |