Correlation Between Blackrock National and Performance Trust
Can any of the company-specific risk be diversified away by investing in both Blackrock National and Performance Trust 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 National and Performance Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock National Municipal and Performance Trust Municipal, you can compare the effects of market volatilities on Blackrock National and Performance Trust 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 National with a short position of Performance Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock National and Performance Trust.
Diversification Opportunities for Blackrock National and Performance Trust
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and Performance is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock National Municipal and Performance Trust Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust and Blackrock National 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 National Municipal are associated (or correlated) with Performance Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust has no effect on the direction of Blackrock National i.e., Blackrock National and Performance Trust go up and down completely randomly.
Pair Corralation between Blackrock National and Performance Trust
Assuming the 90 days horizon Blackrock National Municipal is expected to generate 0.61 times more return on investment than Performance Trust. However, Blackrock National Municipal is 1.63 times less risky than Performance Trust. It trades about 0.24 of its potential returns per unit of risk. Performance Trust Municipal is currently generating about 0.12 per unit of risk. If you would invest 1,007 in Blackrock National Municipal on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Blackrock National Municipal or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock National Municipal vs. Performance Trust Municipal
Performance |
| Timeline |
| Blackrock National |
| Performance Trust |
Blackrock National and Performance Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock National and Performance Trust
The main advantage of trading using opposite Blackrock National and Performance Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock National position performs unexpectedly, Performance Trust 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 Performance Trust will offset losses from the drop in Performance Trust's long position.| Blackrock National vs. Dreyfus Technology Growth | Blackrock National vs. Goldman Sachs Technology | Blackrock National vs. Invesco Technology Fund | Blackrock National vs. Technology Ultrasector Profund |
| Performance Trust vs. Vanguard Intermediate Term Tax Exempt | Performance Trust vs. Vanguard Intermediate Term Tax Exempt | Performance Trust vs. Tax Exempt Bond | Performance Trust vs. Tax Exempt Bond |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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