Correlation Between Blackrock Muniyield and Blackstone Gso
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Blackstone Gso 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 Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniyield Quality and Blackstone Gso Strategic, you can compare the effects of market volatilities on Blackrock Muniyield and Blackstone Gso 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 Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Blackstone Gso.
Diversification Opportunities for Blackrock Muniyield and Blackstone Gso
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Blackstone is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Quality and Blackstone Gso Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso 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 Quality are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Strategic has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Blackstone Gso go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Blackstone Gso
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 9.43 times less return on investment than Blackstone Gso. In addition to that, Blackrock Muniyield is 1.26 times more volatile than Blackstone Gso Strategic. It trades about 0.01 of its total potential returns per unit of risk. Blackstone Gso Strategic is currently generating about 0.13 per unit of volatility. If you would invest 1,187 in Blackstone Gso Strategic on August 28, 2024 and sell it today you would earn a total of 43.00 from holding Blackstone Gso Strategic or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniyield Quality vs. Blackstone Gso Strategic
Performance |
| Timeline |
| Blackrock Muniyield |
| Blackstone Gso Strategic |
Blackrock Muniyield and Blackstone Gso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Blackstone Gso
The main advantage of trading using opposite Blackrock Muniyield and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso'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 |
| Blackstone Gso vs. Eaton Vance Floating | Blackstone Gso vs. NXG NextGen Infrastructure | Blackstone Gso vs. GAMCO Natural Resources | Blackstone Gso 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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