Correlation Between Blackrock Muniholdings and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Pekin Life 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 Pekin Life 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 Pekin Life Insurance, you can compare the effects of market volatilities on Blackrock Muniholdings and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Pekin Life.
Diversification Opportunities for Blackrock Muniholdings and Pekin Life
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Pekin is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Pekin Life go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Pekin Life
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 51.95 times less return on investment than Pekin Life. In addition to that, Blackrock Muniholdings is 1.48 times more volatile than Pekin Life Insurance. It trades about 0.0 of its total potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.23 per unit of volatility. If you would invest 1,150 in Pekin Life Insurance on August 26, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% 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. Pekin Life Insurance
Performance |
| Timeline |
| Blackrock Muniholdings |
| Pekin Life Insurance |
Blackrock Muniholdings and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Pekin Life
The main advantage of trading using opposite Blackrock Muniholdings and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life'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 |
| Pekin Life vs. Invesco High Income | Pekin Life vs. Blackrock Muniholdings Ny | Pekin Life vs. MFS Investment Grade | Pekin Life 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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