Correlation Between Blackrock Muniyield and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Blackrock Muni 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 Blackrock Muni 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 Blackrock Muni Intermediate, you can compare the effects of market volatilities on Blackrock Muniyield and Blackrock Muni 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 Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Blackrock Muni.
Diversification Opportunities for Blackrock Muniyield and Blackrock Muni
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackrock and Blackrock is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield Quality and Blackrock Muni Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muni Inter 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 Blackrock Muni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muni Inter has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Blackrock Muni go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Blackrock Muni
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 1.1 times less return on investment than Blackrock Muni. In addition to that, Blackrock Muniyield is 1.17 times more volatile than Blackrock Muni Intermediate. It trades about 0.05 of its total potential returns per unit of risk. Blackrock Muni Intermediate is currently generating about 0.06 per unit of volatility. If you would invest 1,062 in Blackrock Muni Intermediate on August 24, 2024 and sell it today you would earn a total of 191.00 from holding Blackrock Muni Intermediate or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniyield Quality vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| Blackrock Muniyield |
| Blackrock Muni Inter |
Blackrock Muniyield and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Blackrock Muni
The main advantage of trading using opposite Blackrock Muniyield and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Blackrock Muni 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 Blackrock Muni will offset losses from the drop in Blackrock Muni's long position.| Blackrock Muniyield vs. Tekla Healthcare Investors | Blackrock Muniyield vs. Blackrock Enhanced Capital | Blackrock Muniyield vs. Tekla Life Sciences | Blackrock Muniyield vs. Nuveen New York |
| Blackrock Muni vs. Tekla Healthcare Investors | Blackrock Muni vs. Blackrock Enhanced Capital | Blackrock Muni vs. Tekla Life Sciences | Blackrock Muni vs. Nuveen New York |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets |