Correlation Between RiverNorth Flexible and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both RiverNorth Flexible and Blackrock Muni 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 RiverNorth Flexible and Blackrock Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RiverNorth Flexible Municipalome and Blackrock Muni Intermediate, you can compare the effects of market volatilities on RiverNorth Flexible and Blackrock Muni 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 RiverNorth Flexible with a short position of Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of RiverNorth Flexible and Blackrock Muni.
Diversification Opportunities for RiverNorth Flexible and Blackrock Muni
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between RiverNorth and Blackrock is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding RiverNorth Flexible Municipalo and Blackrock Muni Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muni Inter and RiverNorth Flexible 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 RiverNorth Flexible Municipalome are associated (or correlated) with Blackrock Muni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muni Inter has no effect on the direction of RiverNorth Flexible i.e., RiverNorth Flexible and Blackrock Muni go up and down completely randomly.
Pair Corralation between RiverNorth Flexible and Blackrock Muni
Considering the 90-day investment horizon RiverNorth Flexible Municipalome is expected to under-perform the Blackrock Muni. But the etf apears to be less risky and, when comparing its historical volatility, RiverNorth Flexible Municipalome is 1.43 times less risky than Blackrock Muni. The etf trades about -0.11 of its potential returns per unit of risk. The Blackrock Muni Intermediate is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,238 in Blackrock Muni Intermediate on August 24, 2024 and sell it today you would earn a total of 15.00 from holding Blackrock Muni Intermediate or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RiverNorth Flexible Municipalo vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| RiverNorth Flexible |
| Blackrock Muni Inter |
RiverNorth Flexible and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RiverNorth Flexible and Blackrock Muni
The main advantage of trading using opposite RiverNorth Flexible and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RiverNorth Flexible position performs unexpectedly, Blackrock Muni 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 Muni will offset losses from the drop in Blackrock Muni's long position.| RiverNorth Flexible vs. Blackrock Muniholdings Ny | RiverNorth Flexible vs. MFS Investment Grade | RiverNorth Flexible vs. Eaton Vance National | RiverNorth Flexible vs. Invesco High Income |
| Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Eaton Vance National | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Munivest Fund |
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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