Correlation Between Blackrock Muniholdings and Guggenheim Strategic
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Guggenheim Strategic 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 Guggenheim Strategic 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 Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on Blackrock Muniholdings and Guggenheim Strategic 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 Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Guggenheim Strategic.
Diversification Opportunities for Blackrock Muniholdings and Guggenheim Strategic
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Guggenheim is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Closed and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic 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 Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Guggenheim Strategic go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Guggenheim Strategic
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 3.28 times less return on investment than Guggenheim Strategic. But when comparing it to its historical volatility, Blackrock Muniholdings Closed is 1.2 times less risky than Guggenheim Strategic. It trades about 0.06 of its potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Guggenheim Strategic Opportunities on November 9, 2024 and sell it today you would earn a total of 406.00 from holding Guggenheim Strategic Opportunities or generate 35.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Closed vs. Guggenheim Strategic Opportuni
Performance |
| Timeline |
| Blackrock Muniholdings |
| Guggenheim Strategic |
Blackrock Muniholdings and Guggenheim Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Guggenheim Strategic
The main advantage of trading using opposite Blackrock Muniholdings and Guggenheim Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Guggenheim Strategic 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 Guggenheim Strategic will offset losses from the drop in Guggenheim Strategic'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 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |