Correlation Between Pimco New and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Pimco New 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 Pimco New and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco New York and Blackrock Muniyield New, you can compare the effects of market volatilities on Pimco New 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 Pimco New with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco New and Blackrock Muniyield.
Diversification Opportunities for Pimco New and Blackrock Muniyield
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Blackrock is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Pimco New York and Blackrock Muniyield New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield New and Pimco New 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 Pimco New York 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 New has no effect on the direction of Pimco New i.e., Pimco New and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Pimco New and Blackrock Muniyield
Considering the 90-day investment horizon Pimco New York is expected to under-perform the Blackrock Muniyield. But the fund apears to be less risky and, when comparing its historical volatility, Pimco New York is 1.6 times less risky than Blackrock Muniyield. The fund trades about -0.06 of its potential returns per unit of risk. The Blackrock Muniyield New is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,027 in Blackrock Muniyield New on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Blackrock Muniyield New or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco New York vs. Blackrock Muniyield New
Performance |
| Timeline |
| Pimco New York |
| Blackrock Muniyield New |
Pimco New and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco New and Blackrock Muniyield
The main advantage of trading using opposite Pimco New and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco New 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.| Pimco New vs. Invesco Pennsylvania Value | Pimco New vs. Blackrock Muniholdings Ny | Pimco New vs. Eaton Vance National | Pimco New vs. Nuveen New York |
| Blackrock Muniyield vs. MFS Investment Grade | Blackrock Muniyield vs. Invesco High Income | Blackrock Muniyield vs. Eaton Vance National | Blackrock Muniyield vs. Federated Premier Municipal |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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