Correlation Between Blackrock Muniholdings and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Eagle Point 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 Muniholdings and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Quality and Eagle Point Income, you can compare the effects of market volatilities on Blackrock Muniholdings and Eagle Point 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 Muniholdings with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Eagle Point.
Diversification Opportunities for Blackrock Muniholdings and Eagle Point
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackrock and Eagle is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Quality and Eagle Point Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Income and Blackrock Muniholdings 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 Muniholdings Quality are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Income has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Eagle Point go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Eagle Point
Considering the 90-day investment horizon Blackrock Muniholdings Quality is expected to generate 1.55 times more return on investment than Eagle Point. However, Blackrock Muniholdings is 1.55 times more volatile than Eagle Point Income. It trades about 0.08 of its potential returns per unit of risk. Eagle Point Income is currently generating about 0.07 per unit of risk. If you would invest 903.00 in Blackrock Muniholdings Quality on September 1, 2024 and sell it today you would earn a total of 173.00 from holding Blackrock Muniholdings Quality or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Quality vs. Eagle Point Income
Performance |
| Timeline |
| Blackrock Muniholdings |
| Eagle Point Income |
Blackrock Muniholdings and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Eagle Point
The main advantage of trading using opposite Blackrock Muniholdings and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Blackrock Muniholdings vs. John Hancock Income | Blackrock Muniholdings vs. MFS High Income | Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. Blackrock Muniholdings Closed |
| Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. OFS Credit |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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