Correlation Between Blackrock Muniholdings and Cohen
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Cohen 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 Cohen 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 Cohen and Steers, you can compare the effects of market volatilities on Blackrock Muniholdings and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Cohen.
Diversification Opportunities for Blackrock Muniholdings and Cohen
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackrock and Cohen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Cohen and Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen and Steers 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 Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen and Steers has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Cohen go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Cohen
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 4.71 times less return on investment than Cohen. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 1.05 times less risky than Cohen. It trades about 0.06 of its potential returns per unit of risk. Cohen and Steers is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,971 in Cohen and Steers on November 9, 2024 and sell it today you would earn a total of 65.00 from holding Cohen and Steers or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. Cohen and Steers
Performance |
| Timeline |
| Blackrock Muniholdings |
| Cohen and Steers |
Blackrock Muniholdings and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Cohen
The main advantage of trading using opposite Blackrock Muniholdings and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.| Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Nuveen California Select | Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Federated Premier Municipal |
| Cohen vs. RiverNorth Flexible Municipalome | Cohen vs. Blackrock Muniholdings Ny | Cohen vs. MFS Investment Grade | Cohen vs. Eaton Vance National |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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