Correlation Between Blackrock Muniholdings and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Ameritrans Capital 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 Muniholdings and Ameritrans Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Closed and Ameritrans Capital Corp, you can compare the effects of market volatilities on Blackrock Muniholdings and Ameritrans Capital 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 Muniholdings with a short position of Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Ameritrans Capital.
Diversification Opportunities for Blackrock Muniholdings and Ameritrans Capital
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Ameritrans is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Closed and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp and Blackrock Muniholdings 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 Muniholdings Closed are associated (or correlated) with Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Ameritrans Capital
If you would invest 1,159 in Blackrock Muniholdings Closed on October 29, 2024 and sell it today you would earn a total of 36.00 from holding Blackrock Muniholdings Closed or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Blackrock Muniholdings Closed vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Blackrock Muniholdings |
| Ameritrans Capital Corp |
Blackrock Muniholdings and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Ameritrans Capital
The main advantage of trading using opposite Blackrock Muniholdings and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.| Blackrock Muniholdings vs. John Hancock Income | Blackrock Muniholdings vs. MFS High Income | Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. DTF Tax Free |
| Ameritrans Capital vs. Q2 Holdings | Ameritrans Capital vs. Cadence Design Systems | Ameritrans Capital vs. Emerson Radio | Ameritrans Capital vs. Glorywin Entertainment Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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