Correlation Between Blackrock Muniholdings and Invesco Trust
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Invesco Trust 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 Invesco Trust 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 Invesco Trust For, you can compare the effects of market volatilities on Blackrock Muniholdings and Invesco Trust 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 Invesco Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Invesco Trust.
Diversification Opportunities for Blackrock Muniholdings and Invesco Trust
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and Invesco is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Invesco Trust For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Trust For 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 Invesco Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Trust For has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Invesco Trust go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Invesco Trust
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 1.85 times less return on investment than Invesco Trust. But when comparing it to its historical volatility, Blackrock Muniholdings Ny is 1.15 times less risky than Invesco Trust. It trades about 0.08 of its potential returns per unit of risk. Invesco Trust For is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 936.00 in Invesco Trust For on August 24, 2024 and sell it today you would earn a total of 196.00 from holding Invesco Trust For or generate 20.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. Invesco Trust For
Performance |
| Timeline |
| Blackrock Muniholdings |
| Invesco Trust For |
Blackrock Muniholdings and Invesco Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Invesco Trust
The main advantage of trading using opposite Blackrock Muniholdings and Invesco Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Invesco Trust 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 Invesco Trust will offset losses from the drop in Invesco Trust's long position.| Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Blackrock Muniyield Quality | Blackrock Muniholdings vs. Munivest Fund |
| Invesco Trust vs. Pimco New York | Invesco Trust vs. Pimco New York | Invesco Trust vs. BlackRock New York | Invesco Trust vs. Invesco California Value |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |