Correlation Between Blackrock Munivest and CBH
Can any of the company-specific risk be diversified away by investing in both Blackrock Munivest 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 Munivest and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Munivest and CBH, you can compare the effects of market volatilities on Blackrock Munivest 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 Munivest with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Munivest and CBH.
Diversification Opportunities for Blackrock Munivest and CBH
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackrock and CBH is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Munivest and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Blackrock Munivest 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 Munivest 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 Munivest i.e., Blackrock Munivest and CBH go up and down completely randomly.
Pair Corralation between Blackrock Munivest and CBH
Considering the 90-day investment horizon Blackrock Munivest is expected to generate 1.8 times less return on investment than CBH. In addition to that, Blackrock Munivest is 1.15 times more volatile than CBH. It trades about 0.04 of its total potential returns per unit of risk. CBH is currently generating about 0.07 per unit of volatility. If you would invest 772.00 in CBH on August 26, 2024 and sell it today you would earn a total of 147.00 from holding CBH or generate 19.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.13% |
| Values | Daily Returns |
Blackrock Munivest vs. CBH
Performance |
| Timeline |
| Blackrock Munivest |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackrock Munivest and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Munivest and CBH
The main advantage of trading using opposite Blackrock Munivest and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Munivest 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 Munivest vs. MFS Investment Grade | Blackrock Munivest vs. Eaton Vance National | Blackrock Munivest vs. Blackrock Muniholdings Closed | Blackrock Munivest vs. Blackrock Muniyield Quality |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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