Correlation Between Blackrock Muniyield and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and SuRo 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 SuRo 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 SuRo Capital Corp, you can compare the effects of market volatilities on Blackrock Muniyield and SuRo 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 SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and SuRo Capital.
Diversification Opportunities for Blackrock Muniyield and SuRo Capital
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and SuRo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniyield and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo 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 SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and SuRo Capital go up and down completely randomly.
Pair Corralation between Blackrock Muniyield and SuRo Capital
Considering the 90-day investment horizon Blackrock Muniyield is expected to generate 3.82 times less return on investment than SuRo Capital. But when comparing it to its historical volatility, Blackrock Muniyield is 5.55 times less risky than SuRo Capital. It trades about 0.29 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 462.00 in SuRo Capital Corp on September 3, 2024 and sell it today you would earn a total of 68.00 from holding SuRo Capital Corp or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniyield vs. SuRo Capital Corp
Performance |
| Timeline |
| Blackrock Muniyield |
| SuRo Capital Corp |
Blackrock Muniyield and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniyield and SuRo Capital
The main advantage of trading using opposite Blackrock Muniyield and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, SuRo 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 SuRo Capital will offset losses from the drop in SuRo Capital's long position.| Blackrock Muniyield vs. Tekla Healthcare Investors | Blackrock Muniyield vs. Tekla Life Sciences | Blackrock Muniyield vs. Cohen Steers Reit | Blackrock Muniyield vs. XAI Octagon Floating |
| SuRo Capital vs. Federated Premier Municipal | SuRo Capital vs. Blackrock Muniyield | SuRo Capital vs. Federated Investors B | SuRo Capital vs. SEI Investments |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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