Correlation Between Blackrock Muni and Burford Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and Burford 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 Burford 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 Burford Capital, you can compare the effects of market volatilities on Blackrock Muni and Burford 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 Burford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Burford Capital.
Diversification Opportunities for Blackrock Muni and Burford Capital
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackrock and Burford is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Burford Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burford Capital 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 Burford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burford Capital has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and Burford Capital go up and down completely randomly.
Pair Corralation between Blackrock Muni and Burford Capital
Considering the 90-day investment horizon Blackrock Muni is expected to generate 20.76 times less return on investment than Burford Capital. But when comparing it to its historical volatility, Blackrock Muni Intermediate is 5.66 times less risky than Burford Capital. It trades about 0.04 of its potential returns per unit of risk. Burford Capital is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,314 in Burford Capital on November 5, 2024 and sell it today you would earn a total of 90.00 from holding Burford Capital or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muni Intermediate vs. Burford Capital
Performance |
| Timeline |
| Blackrock Muni Inter |
| Burford Capital |
Blackrock Muni and Burford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and Burford Capital
The main advantage of trading using opposite Blackrock Muni and Burford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, Burford 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 Burford Capital will offset losses from the drop in Burford Capital's long position.| Blackrock Muni vs. Blackrock Muniyield | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniholdings Quality |
| Burford Capital vs. Franklin Templeton Limited | Burford Capital vs. Blackrock Muni Intermediate | Burford Capital vs. Munivest Fund | Burford Capital vs. Blackrock Floating Rate |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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