Correlation Between Blackrock Muniholdings and QNB Corp
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and QNB Corp 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 QNB Corp 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 QNB Corp, you can compare the effects of market volatilities on Blackrock Muniholdings and QNB Corp 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 QNB Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and QNB Corp.
Diversification Opportunities for Blackrock Muniholdings and QNB Corp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and QNB is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and QNB Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QNB Corp 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 QNB Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QNB Corp has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and QNB Corp go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and QNB Corp
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 2.26 times less return on investment than QNB Corp. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 1.09 times less risky than QNB Corp. It trades about 0.19 of its potential returns per unit of risk. QNB Corp is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 3,103 in QNB Corp on August 29, 2024 and sell it today you would earn a total of 197.00 from holding QNB Corp or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. QNB Corp
Performance |
| Timeline |
| Blackrock Muniholdings |
| QNB Corp |
Blackrock Muniholdings and QNB Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and QNB Corp
The main advantage of trading using opposite Blackrock Muniholdings and QNB Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, QNB Corp 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 QNB Corp will offset losses from the drop in QNB Corp'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 |
| QNB Corp vs. Invesco High Income | QNB Corp vs. Blackrock Muniholdings Ny | QNB Corp vs. Nuveen California Select | QNB Corp vs. MFS Investment Grade |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |