Correlation Between Blackrock Muniyield and Bain Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Bain 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 Bain 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 Bain Capital Specialty, you can compare the effects of market volatilities on Blackrock Muniyield and Bain 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 Bain Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Bain Capital.
Diversification Opportunities for Blackrock Muniyield and Bain Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackrock and Bain is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield and Bain Capital Specialty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bain Capital Specialty 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 Bain Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bain Capital Specialty has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Bain Capital go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Bain Capital
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 2.99 times less return on investment than Bain Capital. But when comparing it to its historical volatility, Blackrock Muniyield is 1.71 times less risky than Bain Capital. It trades about 0.05 of its potential returns per unit of risk. Bain Capital Specialty is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,053 in Bain Capital Specialty on August 24, 2024 and sell it today you would earn a total of 611.00 from holding Bain Capital Specialty or generate 58.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniyield vs. Bain Capital Specialty
Performance |
| Timeline |
| Blackrock Muniyield |
| Bain Capital Specialty |
Blackrock Muniyield and Bain Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Bain Capital
The main advantage of trading using opposite Blackrock Muniyield and Bain Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Bain 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 Bain Capital will offset losses from the drop in Bain Capital's long position.| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Eaton Vance National | Blackrock Muniyield vs. Blackrock Muniyield Quality | Blackrock Muniyield vs. Munivest Fund |
| Bain Capital vs. Invesco Advantage MIT | Bain Capital vs. Invesco Municipal Trust | Bain Capital vs. Invesco California Value | Bain Capital vs. Victory Capital Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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