Correlation Between Blackrock Muniholdings and Coastal Carolina
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Coastal Carolina 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 Coastal Carolina 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 Coastal Carolina Bancshares, you can compare the effects of market volatilities on Blackrock Muniholdings and Coastal Carolina 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 Coastal Carolina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Coastal Carolina.
Diversification Opportunities for Blackrock Muniholdings and Coastal Carolina
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Coastal is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Coastal Carolina Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Carolina Ban 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 Coastal Carolina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Carolina Ban has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Coastal Carolina go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Coastal Carolina
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 9.35 times less return on investment than Coastal Carolina. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 1.72 times less risky than Coastal Carolina. It trades about 0.07 of its potential returns per unit of risk. Coastal Carolina Bancshares is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Coastal Carolina Bancshares on August 25, 2024 and sell it today you would earn a total of 95.00 from holding Coastal Carolina Bancshares or generate 9.5% 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. Coastal Carolina Bancshares
Performance |
| Timeline |
| Blackrock Muniholdings |
| Coastal Carolina Ban |
Blackrock Muniholdings and Coastal Carolina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Coastal Carolina
The main advantage of trading using opposite Blackrock Muniholdings and Coastal Carolina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Coastal Carolina 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 Coastal Carolina will offset losses from the drop in Coastal Carolina'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 |
| Coastal Carolina vs. Invesco High Income | Coastal Carolina vs. Blackrock Muniholdings Ny | Coastal Carolina vs. MFS Investment Grade | Coastal Carolina 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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