Correlation Between Blackrock Muniyield and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Platinum Asia 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 Platinum Asia 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 Platinum Asia Investments, you can compare the effects of market volatilities on Blackrock Muniyield and Platinum Asia 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 Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Platinum Asia.
Diversification Opportunities for Blackrock Muniyield and Platinum Asia
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackrock and Platinum is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Quality and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments 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 Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Platinum Asia go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Platinum Asia
Considering the 90-day investment horizon Blackrock Muniyield Quality is expected to generate 0.67 times more return on investment than Platinum Asia. However, Blackrock Muniyield Quality is 1.5 times less risky than Platinum Asia. It trades about 0.08 of its potential returns per unit of risk. Platinum Asia Investments is currently generating about 0.0 per unit of risk. If you would invest 1,031 in Blackrock Muniyield Quality on August 28, 2024 and sell it today you would earn a total of 9.00 from holding Blackrock Muniyield Quality or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blackrock Muniyield Quality vs. Platinum Asia Investments
Performance |
| Timeline |
| Blackrock Muniyield |
| Platinum Asia Investments |
Blackrock Muniyield and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Platinum Asia
The main advantage of trading using opposite Blackrock Muniyield and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia's 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 |
| Platinum Asia vs. The Gabelli Dividend | Platinum Asia vs. Voya Global Advantage | Platinum Asia vs. Invesco California Value | Platinum Asia vs. John Hancock Investors |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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