Correlation Between Blackrock Muni and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and Blackrock Muniyield 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 Blackrock Muniyield 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 Blackrock Muniyield, you can compare the effects of market volatilities on Blackrock Muni and Blackrock Muniyield 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 Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Blackrock Muniyield.
Diversification Opportunities for Blackrock Muni and Blackrock Muniyield
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackrock and Blackrock is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Blackrock Muniyield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Blackrock Muni and Blackrock Muniyield
Considering the 90-day investment horizon Blackrock Muni Intermediate is expected to generate 0.91 times more return on investment than Blackrock Muniyield. However, Blackrock Muni Intermediate is 1.1 times less risky than Blackrock Muniyield. It trades about 0.06 of its potential returns per unit of risk. Blackrock Muniyield is currently generating about 0.05 per unit of risk. If you would invest 1,062 in Blackrock Muni Intermediate on August 24, 2024 and sell it today you would earn a total of 191.00 from holding Blackrock Muni Intermediate or generate 17.98% 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. Blackrock Muniyield
Performance |
| Timeline |
| Blackrock Muni Inter |
| Blackrock Muniyield |
Blackrock Muni and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and Blackrock Muniyield
The main advantage of trading using opposite Blackrock Muni and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, Blackrock Muniyield 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 Blackrock Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| Blackrock Muni vs. Tekla Healthcare Investors | Blackrock Muni vs. Blackrock Enhanced Capital | Blackrock Muni vs. Tekla Life Sciences | Blackrock Muni vs. Nuveen New York |
| Blackrock Muniyield vs. Tekla Healthcare Investors | Blackrock Muniyield vs. Blackrock Enhanced Capital | Blackrock Muniyield vs. Tekla Life Sciences | Blackrock Muniyield vs. Nuveen New York |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |