Correlation Between Blackrock Muniyield and Invesco High
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Invesco High 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 Invesco High 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 Invesco High Income, you can compare the effects of market volatilities on Blackrock Muniyield and Invesco High 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 Invesco High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Invesco High.
Diversification Opportunities for Blackrock Muniyield and Invesco High
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackrock and Invesco is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Quality and Invesco High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco High Income 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 Invesco High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco High Income has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Invesco High go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Invesco High
If you would invest 991.00 in Blackrock Muniyield Quality on November 5, 2024 and sell it today you would earn a total of 27.00 from holding Blackrock Muniyield Quality or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Blackrock Muniyield Quality vs. Invesco High Income
Performance |
| Timeline |
| Blackrock Muniyield |
| Invesco High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Blackrock Muniyield and Invesco High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Invesco High
The main advantage of trading using opposite Blackrock Muniyield and Invesco High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Invesco High 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 High will offset losses from the drop in Invesco High'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 |
| Invesco High vs. MFS Investment Grade | Invesco High vs. Eaton Vance National | Invesco High vs. Nuveen California Select | Invesco High vs. Federated Premier Municipal |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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