Correlation Between Blackrock Muniyield and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Ameritrans Capital 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 Muniyield and Ameritrans Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniyield and Ameritrans Capital Corp, you can compare the effects of market volatilities on Blackrock Muniyield and Ameritrans Capital 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 Muniyield with a short position of Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Ameritrans Capital.
Diversification Opportunities for Blackrock Muniyield and Ameritrans Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackrock and Ameritrans is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp and Blackrock Muniyield 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 Muniyield are associated (or correlated) with Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Ameritrans Capital
If you would invest 1,035 in Blackrock Muniyield on October 29, 2024 and sell it today you would earn a total of 28.00 from holding Blackrock Muniyield or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.0% |
| Values | Daily Returns |
Blackrock Muniyield vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Blackrock Muniyield |
| Ameritrans Capital Corp |
Blackrock Muniyield and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Ameritrans Capital
The main advantage of trading using opposite Blackrock Muniyield and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.The idea behind Blackrock Muniyield and Ameritrans Capital Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Ameritrans Capital vs. Q2 Holdings | Ameritrans Capital vs. Cadence Design Systems | Ameritrans Capital vs. Emerson Radio | Ameritrans Capital vs. Glorywin Entertainment Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |