Correlation Between Blackrock Munivest and Western Asset
Can any of the company-specific risk be diversified away by investing in both Blackrock Munivest and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Munivest and Western Asset High, you can compare the effects of market volatilities on Blackrock Munivest and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Munivest and Western Asset.
Diversification Opportunities for Blackrock Munivest and Western Asset
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackrock and Western is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Munivest and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Blackrock Munivest i.e., Blackrock Munivest and Western Asset go up and down completely randomly.
Pair Corralation between Blackrock Munivest and Western Asset
Considering the 90-day investment horizon Blackrock Munivest is expected to under-perform the Western Asset. In addition to that, Blackrock Munivest is 1.2 times more volatile than Western Asset High. It trades about -0.16 of its total potential returns per unit of risk. Western Asset High is currently generating about -0.08 per unit of volatility. If you would invest 393.00 in Western Asset High on September 20, 2024 and sell it today you would lose (4.00) from holding Western Asset High or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Munivest vs. Western Asset High
Performance |
| Timeline |
| Blackrock Munivest |
| Western Asset High |
Blackrock Munivest and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Munivest and Western Asset
The main advantage of trading using opposite Blackrock Munivest and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Munivest position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Blackrock Munivest vs. MFS Investment Grade | Blackrock Munivest vs. Eaton Vance Municipal | Blackrock Munivest vs. DTF Tax Free | Blackrock Munivest vs. Aquagold International |
| Western Asset vs. Western Asset Global | Western Asset vs. Western Asset Global | Western Asset vs. European Equity Closed | Western Asset vs. Western Asset High |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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