Correlation Between Blackrock Muni and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and Ameritrans Capital 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 Muni and Ameritrans Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muni Intermediate and Ameritrans Capital Corp, you can compare the effects of market volatilities on Blackrock Muni and Ameritrans Capital 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 Muni with a short position of Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Ameritrans Capital.
Diversification Opportunities for Blackrock Muni and Ameritrans Capital
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Ameritrans is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp and Blackrock Muni 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 Muni Intermediate are associated (or correlated) with Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Blackrock Muni and Ameritrans Capital
If you would invest 1,209 in Blackrock Muni Intermediate on October 29, 2024 and sell it today you would earn a total of 3.00 from holding Blackrock Muni Intermediate or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Blackrock Muni Intermediate vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Blackrock Muni Inter |
| Ameritrans Capital Corp |
Blackrock Muni and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and Ameritrans Capital
The main advantage of trading using opposite Blackrock Muni and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.| Blackrock Muni vs. John Hancock Income | Blackrock Muni vs. MFS High Income | Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Blackrock Muniholdings Closed |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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