Correlation Between Blackrock Muni and Nuveen Credit
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and Nuveen 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 Muni and Nuveen Credit 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 Nuveen Credit Strategies, you can compare the effects of market volatilities on Blackrock Muni and Nuveen 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 Muni with a short position of Nuveen Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Nuveen Credit.
Diversification Opportunities for Blackrock Muni and Nuveen Credit
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackrock and Nuveen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Nuveen Credit Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Credit Strategies 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 Nuveen Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Credit Strategies has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and Nuveen Credit go up and down completely randomly.
Pair Corralation between Blackrock Muni and Nuveen Credit
Considering the 90-day investment horizon Blackrock Muni is expected to generate 1.91 times less return on investment than Nuveen Credit. But when comparing it to its historical volatility, Blackrock Muni Intermediate is 1.22 times less risky than Nuveen Credit. It trades about 0.06 of its potential returns per unit of risk. Nuveen Credit Strategies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 419.00 in Nuveen Credit Strategies on August 24, 2024 and sell it today you would earn a total of 158.00 from holding Nuveen Credit Strategies or generate 37.71% 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. Nuveen Credit Strategies
Performance |
| Timeline |
| Blackrock Muni Inter |
| Nuveen Credit Strategies |
Blackrock Muni and Nuveen Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and Nuveen Credit
The main advantage of trading using opposite Blackrock Muni and Nuveen Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, Nuveen 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 Nuveen Credit will offset losses from the drop in Nuveen Credit's long position.| Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Eaton Vance National | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Munivest Fund |
| Nuveen Credit vs. MFS Investment Grade | Nuveen Credit vs. Eaton Vance National | Nuveen Credit vs. Blackrock Muniyield Quality | Nuveen Credit vs. Munivest Fund |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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