Correlation Between Blackrock Muniholdings and Farmers
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Farmers 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 Farmers 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 Farmers And Merchants, you can compare the effects of market volatilities on Blackrock Muniholdings and Farmers 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 Farmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Farmers.
Diversification Opportunities for Blackrock Muniholdings and Farmers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackrock and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Farmers And Merchants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers And Merchants 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 Farmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers And Merchants has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Farmers go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Farmers
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 2.14 times less return on investment than Farmers. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 1.22 times less risky than Farmers. It trades about 0.19 of its potential returns per unit of risk. Farmers And Merchants is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 545,000 in Farmers And Merchants on August 29, 2024 and sell it today you would earn a total of 32,700 from holding Farmers And Merchants or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. Farmers And Merchants
Performance |
| Timeline |
| Blackrock Muniholdings |
| Farmers And Merchants |
Blackrock Muniholdings and Farmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Farmers
The main advantage of trading using opposite Blackrock Muniholdings and Farmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Farmers 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 Farmers will offset losses from the drop in Farmers' 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 |
| Farmers vs. First National Bank | Farmers vs. Farmers Merchants Bancorp | Farmers vs. Exchange Bank | Farmers vs. First National of |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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