Correlation Between Blackrock California and Managed Account
Can any of the company-specific risk be diversified away by investing in both Blackrock California and Managed Account 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 California and Managed Account into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock California Municipal and Managed Account Series, you can compare the effects of market volatilities on Blackrock California and Managed Account 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 California with a short position of Managed Account. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock California and Managed Account.
Diversification Opportunities for Blackrock California and Managed Account
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackrock and Managed is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock California Municipal and Managed Account Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Managed Account Series and Blackrock California 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 California Municipal are associated (or correlated) with Managed Account. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Managed Account Series has no effect on the direction of Blackrock California i.e., Blackrock California and Managed Account go up and down completely randomly.
Pair Corralation between Blackrock California and Managed Account
Assuming the 90 days horizon Blackrock California is expected to generate 1.49 times less return on investment than Managed Account. But when comparing it to its historical volatility, Blackrock California Municipal is 1.62 times less risky than Managed Account. It trades about 0.06 of its potential returns per unit of risk. Managed Account Series is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 814.00 in Managed Account Series on October 24, 2024 and sell it today you would earn a total of 75.00 from holding Managed Account Series or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Blackrock California Municipal vs. Managed Account Series
Performance |
| Timeline |
| Blackrock California |
| Managed Account Series |
Blackrock California and Managed Account Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock California and Managed Account
The main advantage of trading using opposite Blackrock California and Managed Account positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock California position performs unexpectedly, Managed Account 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 Managed Account will offset losses from the drop in Managed Account's long position.| Blackrock California vs. Victory Incore Fund | Blackrock California vs. Predex Funds | Blackrock California vs. L Abbett Fundamental | Blackrock California vs. The Texas Fund |
| Managed Account vs. Guggenheim High Yield | Managed Account vs. City National Rochdale | Managed Account vs. Virtus High Yield | Managed Account vs. Fidelity Capital Income |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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