Correlation Between Blackrock Muniyield and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Cohen Steers 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 Cohen Steers 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 Cohen Steers Limited, you can compare the effects of market volatilities on Blackrock Muniyield and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Cohen Steers.
Diversification Opportunities for Blackrock Muniyield and Cohen Steers
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackrock and Cohen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Quality and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Limited has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Cohen Steers go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Cohen Steers
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 2.26 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Blackrock Muniyield Quality is 1.1 times less risky than Cohen Steers. It trades about 0.05 of its potential returns per unit of risk. Cohen Steers Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,636 in Cohen Steers Limited on August 28, 2024 and sell it today you would earn a total of 461.00 from holding Cohen Steers Limited or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniyield Quality vs. Cohen Steers Limited
Performance |
| Timeline |
| Blackrock Muniyield |
| Cohen Steers Limited |
Blackrock Muniyield and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Cohen Steers
The main advantage of trading using opposite Blackrock Muniyield and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Blackrock Muniyield vs. DTF Tax Free | Blackrock Muniyield vs. MFS High Yield | Blackrock Muniyield vs. MFS High Income | Blackrock Muniyield vs. John Hancock Income |
| Cohen Steers vs. Flaherty and Crumrine | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred | Cohen Steers vs. John Hancock Preferred |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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