Correlation Between Blackrock Muniholdings and BNY Mellon
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and BNY Mellon 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 BNY Mellon 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 BNY Mellon Strategic, you can compare the effects of market volatilities on Blackrock Muniholdings and BNY Mellon 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 BNY Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and BNY Mellon.
Diversification Opportunities for Blackrock Muniholdings and BNY Mellon
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and BNY is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Closed and BNY Mellon Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNY Mellon 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 BNY Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNY Mellon Strategic has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and BNY Mellon go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and BNY Mellon
Considering the 90-day investment horizon Blackrock Muniholdings Closed is expected to generate 1.07 times more return on investment than BNY Mellon. However, Blackrock Muniholdings is 1.07 times more volatile than BNY Mellon Strategic. It trades about 0.4 of its potential returns per unit of risk. BNY Mellon Strategic is currently generating about 0.2 per unit of risk. If you would invest 1,206 in Blackrock Muniholdings Closed on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Blackrock Muniholdings Closed or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Closed vs. BNY Mellon Strategic
Performance |
| Timeline |
| Blackrock Muniholdings |
| BNY Mellon Strategic |
Blackrock Muniholdings and BNY Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and BNY Mellon
The main advantage of trading using opposite Blackrock Muniholdings and BNY Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, BNY Mellon 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 BNY Mellon will offset losses from the drop in BNY Mellon'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 |
| BNY Mellon vs. Blackrock Muniholdings Closed | BNY Mellon vs. DTF Tax Free | BNY Mellon vs. John Hancock Income | BNY Mellon vs. MFS Investment Grade |
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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