Correlation Between Blackrock Muni and CBH
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and CBH 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 CBH 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 CBH, you can compare the effects of market volatilities on Blackrock Muni and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and CBH.
Diversification Opportunities for Blackrock Muni and CBH
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and CBH is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and CBH go up and down completely randomly.
Pair Corralation between Blackrock Muni and CBH
If you would invest 1,212 in Blackrock Muni Intermediate on October 20, 2024 and sell it today you would earn a total of 6.00 from holding Blackrock Muni Intermediate or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Blackrock Muni Intermediate vs. CBH
Performance |
| Timeline |
| Blackrock Muni Inter |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackrock Muni and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and CBH
The main advantage of trading using opposite Blackrock Muni and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH'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 |
| CBH vs. Eaton Vance National | CBH vs. Blackrock Muniholdings Ny | CBH vs. Nuveen California Select | CBH vs. MFS Investment Grade |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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