Correlation Between Blackrock Muniholdings and Investcorp Credit
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Investcorp Credit 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 Investcorp Credit 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 Investcorp Credit Management, you can compare the effects of market volatilities on Blackrock Muniholdings and Investcorp Credit 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 Investcorp Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Investcorp Credit.
Diversification Opportunities for Blackrock Muniholdings and Investcorp Credit
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackrock and Investcorp is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Quality and Investcorp Credit Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Credit 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 Investcorp Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Credit has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Investcorp Credit go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Investcorp Credit
Considering the 90-day investment horizon Blackrock Muniholdings Quality is expected to generate 0.28 times more return on investment than Investcorp Credit. However, Blackrock Muniholdings Quality is 3.61 times less risky than Investcorp Credit. It trades about 0.13 of its potential returns per unit of risk. Investcorp Credit Management is currently generating about 0.02 per unit of risk. If you would invest 944.00 in Blackrock Muniholdings Quality on August 28, 2024 and sell it today you would earn a total of 132.00 from holding Blackrock Muniholdings Quality or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Quality vs. Investcorp Credit Management
Performance |
| Timeline |
| Blackrock Muniholdings |
| Investcorp Credit |
Blackrock Muniholdings and Investcorp Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Investcorp Credit
The main advantage of trading using opposite Blackrock Muniholdings and Investcorp Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, Investcorp Credit 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 Investcorp Credit will offset losses from the drop in Investcorp Credit's long position.| Blackrock Muniholdings vs. DTF Tax Free | Blackrock Muniholdings vs. MFS High Yield | Blackrock Muniholdings vs. MFS High Income | Blackrock Muniholdings vs. John Hancock Income |
| Investcorp Credit vs. PowerUp Acquisition Corp | Investcorp Credit vs. Aurora Innovation | Investcorp Credit vs. HUMANA INC | Investcorp Credit vs. Aquagold International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |