Correlation Between Blackrock Muniholdings and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and CCFNB Bancorp 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 CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Ny and CCFNB Bancorp, you can compare the effects of market volatilities on Blackrock Muniholdings and CCFNB Bancorp 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 CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and CCFNB Bancorp.
Diversification Opportunities for Blackrock Muniholdings and CCFNB Bancorp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and CCFNB is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp 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 Ny are associated (or correlated) with CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and CCFNB Bancorp
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 4.46 times less return on investment than CCFNB Bancorp. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 3.33 times less risky than CCFNB Bancorp. It trades about 0.12 of its potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 3,405 in CCFNB Bancorp on August 28, 2024 and sell it today you would earn a total of 242.00 from holding CCFNB Bancorp or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. CCFNB Bancorp
Performance |
| Timeline |
| Blackrock Muniholdings |
| CCFNB Bancorp |
Blackrock Muniholdings and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and CCFNB Bancorp
The main advantage of trading using opposite Blackrock Muniholdings and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, CCFNB Bancorp 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.| Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Invesco High Income | Blackrock Muniholdings vs. Nuveen California Select | Blackrock Muniholdings vs. MFS Investment Grade |
| CCFNB Bancorp vs. Invesco High Income | CCFNB Bancorp vs. Blackrock Muniholdings Ny | CCFNB Bancorp vs. MFS Investment Grade | CCFNB Bancorp vs. Federated Premier Municipal |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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