Correlation Between Pacific Financial and Blackrock Muniholdings
Can any of the company-specific risk be diversified away by investing in both Pacific Financial and Blackrock Muniholdings 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 Pacific Financial and Blackrock Muniholdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Financial Corp and Blackrock Muniholdings Ny, you can compare the effects of market volatilities on Pacific Financial and Blackrock Muniholdings 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 Pacific Financial with a short position of Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Financial and Blackrock Muniholdings.
Diversification Opportunities for Pacific Financial and Blackrock Muniholdings
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pacific and Blackrock is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Financial Corp and Blackrock Muniholdings Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings and Pacific Financial 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 Pacific Financial Corp are associated (or correlated) with Blackrock Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of Pacific Financial i.e., Pacific Financial and Blackrock Muniholdings go up and down completely randomly.
Pair Corralation between Pacific Financial and Blackrock Muniholdings
Given the investment horizon of 90 days Pacific Financial Corp is expected to generate 3.04 times more return on investment than Blackrock Muniholdings. However, Pacific Financial is 3.04 times more volatile than Blackrock Muniholdings Ny. It trades about 0.07 of its potential returns per unit of risk. Blackrock Muniholdings Ny is currently generating about 0.09 per unit of risk. If you would invest 1,034 in Pacific Financial Corp on September 2, 2024 and sell it today you would earn a total of 266.00 from holding Pacific Financial Corp or generate 25.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.92% |
| Values | Daily Returns |
Pacific Financial Corp vs. Blackrock Muniholdings Ny
Performance |
| Timeline |
| Pacific Financial Corp |
| Blackrock Muniholdings |
Pacific Financial and Blackrock Muniholdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Financial and Blackrock Muniholdings
The main advantage of trading using opposite Pacific Financial and Blackrock Muniholdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Financial position performs unexpectedly, Blackrock Muniholdings 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 Muniholdings will offset losses from the drop in Blackrock Muniholdings' long position.| Pacific Financial vs. Pioneer Bankcorp | Pacific Financial vs. Liberty Northwest Bancorp | Pacific Financial vs. First Community | Pacific Financial vs. Coeur dAlene Bancorp |
| Blackrock Muniholdings vs. Eaton Vance National | Blackrock Muniholdings vs. Invesco High Income | Blackrock Muniholdings vs. Nuveen California Select | Blackrock Muniholdings vs. MFS Investment Grade |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |