Correlation Between Noah Holdings and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Noah Holdings and Blackrock Muniyield 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 Noah Holdings and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noah Holdings and Blackrock Muniyield, you can compare the effects of market volatilities on Noah Holdings and Blackrock Muniyield 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 Noah Holdings with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noah Holdings and Blackrock Muniyield.
Diversification Opportunities for Noah Holdings and Blackrock Muniyield
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Noah and Blackrock is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Noah Holdings and Blackrock Muniyield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield and Noah Holdings 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 Noah Holdings are associated (or correlated) with Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Noah Holdings i.e., Noah Holdings and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Noah Holdings and Blackrock Muniyield
Given the investment horizon of 90 days Noah Holdings is expected to under-perform the Blackrock Muniyield. In addition to that, Noah Holdings is 2.67 times more volatile than Blackrock Muniyield. It trades about -0.35 of its total potential returns per unit of risk. Blackrock Muniyield is currently generating about -0.24 per unit of volatility. If you would invest 1,046 in Blackrock Muniyield on January 13, 2025 and sell it today you would lose (69.00) from holding Blackrock Muniyield or give up 6.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Noah Holdings vs. Blackrock Muniyield
Performance |
| Timeline |
| Noah Holdings |
| Blackrock Muniyield |
Noah Holdings and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noah Holdings and Blackrock Muniyield
The main advantage of trading using opposite Noah Holdings and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noah Holdings position performs unexpectedly, Blackrock Muniyield 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 Blackrock Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| Noah Holdings vs. MFS Investment Grade | Noah Holdings vs. Eaton Vance National | Noah Holdings vs. Nuveen California Select | Noah Holdings vs. Blackrock Munivest |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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