Correlation Between Blackrock Muniyield and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Saba 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 Saba 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 Saba Capital Income, you can compare the effects of market volatilities on Blackrock Muniyield and Saba 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 Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Saba Capital.
Diversification Opportunities for Blackrock Muniyield and Saba Capital
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Saba is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income 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 Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Saba Capital go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and Saba Capital
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 1.33 times less return on investment than Saba Capital. In addition to that, Blackrock Muniyield is 1.91 times more volatile than Saba Capital Income. It trades about 0.28 of its total potential returns per unit of risk. Saba Capital Income is currently generating about 0.7 per unit of volatility. If you would invest 742.00 in Saba Capital Income on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Saba Capital Income or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Blackrock Muniyield vs. Saba Capital Income
Performance |
| Timeline |
| Blackrock Muniyield |
| Saba Capital Income |
Blackrock Muniyield and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and Saba Capital
The main advantage of trading using opposite Blackrock Muniyield and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Saba 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Eaton Vance Municipal | Blackrock Muniyield vs. DTF Tax Free | Blackrock Muniyield vs. Aquagold International |
| Saba Capital vs. Federated Premier Municipal | Saba Capital vs. Blackrock Muniyield | Saba Capital vs. Diamond Hill Investment | Saba Capital vs. NXG NextGen Infrastructure |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |