Correlation Between Blackrock Muniyield and Cornerstone Strategic
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Cornerstone Strategic 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 Muniyield and Cornerstone Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniyield Mi and Cornerstone Strategic Return, you can compare the effects of market volatilities on Blackrock Muniyield and Cornerstone Strategic 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 Muniyield with a short position of Cornerstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Cornerstone Strategic.
Diversification Opportunities for Blackrock Muniyield and Cornerstone Strategic
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Cornerstone is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Mi and Cornerstone Strategic Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic and Blackrock Muniyield 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 Muniyield Mi are associated (or correlated) with Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Cornerstone Strategic go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Cornerstone Strategic
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 5.22 times less return on investment than Cornerstone Strategic. But when comparing it to its historical volatility, Blackrock Muniyield Mi is 2.53 times less risky than Cornerstone Strategic. It trades about 0.2 of its potential returns per unit of risk. Cornerstone Strategic Return is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Cornerstone Strategic Return on August 28, 2024 and sell it today you would earn a total of 82.00 from holding Cornerstone Strategic Return or generate 9.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniyield Mi vs. Cornerstone Strategic Return
Performance |
| Timeline |
| Blackrock Muniyield |
| Cornerstone Strategic |
Blackrock Muniyield and Cornerstone Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Cornerstone Strategic
The main advantage of trading using opposite Blackrock Muniyield and Cornerstone Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Cornerstone Strategic 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 Cornerstone Strategic will offset losses from the drop in Cornerstone Strategic's long position.| Blackrock Muniyield vs. John Hancock Income | Blackrock Muniyield vs. MFS High Income | Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Blackrock Muniholdings Closed |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |