Correlation Between Blackrock Muni and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and Bny Mellon 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 Bny Mellon 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 Bny Mellon Municipalome, you can compare the effects of market volatilities on Blackrock Muni and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Bny Mellon.
Diversification Opportunities for Blackrock Muni and Bny Mellon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and Bny is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Bny Mellon Municipalome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Municipalome 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Municipalome has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and Bny Mellon go up and down completely randomly.
Pair Corralation between Blackrock Muni and Bny Mellon
Considering the 90-day investment horizon Blackrock Muni Intermediate is expected to under-perform the Bny Mellon. But the fund apears to be less risky and, when comparing its historical volatility, Blackrock Muni Intermediate is 1.28 times less risky than Bny Mellon. The fund trades about -0.04 of its potential returns per unit of risk. The Bny Mellon Municipalome is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Bny Mellon Municipalome on November 9, 2024 and sell it today you would earn a total of 11.00 from holding Bny Mellon Municipalome or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muni Intermediate vs. Bny Mellon Municipalome
Performance |
| Timeline |
| Blackrock Muni Inter |
| Bny Mellon Municipalome |
Blackrock Muni and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and Bny Mellon
The main advantage of trading using opposite Blackrock Muni and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon'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 |
| Bny Mellon vs. Blackrock Muniyield | Bny Mellon vs. Blackrock Muni Intermediate | Bny Mellon vs. Blackrock Muniyield Quality | Bny Mellon vs. Blackrock Muniyield Quality |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |