Correlation Between Blackrock Muniholdings and Danske Bank
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Danske Bank 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 Danske Bank 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 Danske Bank AS, you can compare the effects of market volatilities on Blackrock Muniholdings and Danske Bank 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 Danske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Danske Bank.
Diversification Opportunities for Blackrock Muniholdings and Danske Bank
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Danske is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Danske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Bank AS 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 Danske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Bank AS has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Danske Bank go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Danske Bank
Considering the 90-day investment horizon Blackrock Muniholdings Ny is expected to generate 0.36 times more return on investment than Danske Bank. However, Blackrock Muniholdings Ny is 2.8 times less risky than Danske Bank. It trades about 0.2 of its potential returns per unit of risk. Danske Bank AS is currently generating about -0.06 per unit of risk. If you would invest 1,057 in Blackrock Muniholdings Ny on August 31, 2024 and sell it today you would earn a total of 29.00 from holding Blackrock Muniholdings Ny or generate 2.74% 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. Danske Bank AS
Performance |
| Timeline |
| Blackrock Muniholdings |
| Danske Bank AS |
Blackrock Muniholdings and Danske Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Danske Bank
The main advantage of trading using opposite Blackrock Muniholdings and Danske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Danske Bank 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 Danske Bank will offset losses from the drop in Danske Bank's long position.| Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Eaton Vance Municipal | Blackrock Muniholdings vs. DTF Tax Free | Blackrock Muniholdings vs. HUMANA INC |
| Danske Bank vs. Israel Discount Bank | Danske Bank vs. Baraboo Bancorporation | Danske Bank vs. Schweizerische Nationalbank | Danske Bank vs. Jyske Bank AS |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |