Correlation Between Munivest Fund and CBH
Can any of the company-specific risk be diversified away by investing in both Munivest Fund 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 Munivest Fund and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and CBH, you can compare the effects of market volatilities on Munivest Fund 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 Munivest Fund with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and CBH.
Diversification Opportunities for Munivest Fund and CBH
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Munivest and CBH is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Munivest Fund 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 Munivest Fund 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 Munivest Fund i.e., Munivest Fund and CBH go up and down completely randomly.
Pair Corralation between Munivest Fund and CBH
If you would invest 723.00 in Munivest Fund on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Munivest Fund or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Munivest Fund vs. CBH
Performance |
| Timeline |
| Munivest Fund |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Munivest Fund and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and CBH
The main advantage of trading using opposite Munivest Fund and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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.| Munivest Fund vs. DTF Tax Free | Munivest Fund vs. MFS High Yield | Munivest Fund vs. MFS High Income | Munivest Fund vs. John Hancock Income |
| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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