Correlation Between RiverNorth Flexible and CBH
Can any of the company-specific risk be diversified away by investing in both RiverNorth Flexible and CBH 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 CBH 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 CBH, you can compare the effects of market volatilities on RiverNorth Flexible and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of RiverNorth Flexible and CBH.
Diversification Opportunities for RiverNorth Flexible and CBH
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between RiverNorth and CBH is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding RiverNorth Flexible Municipalo and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of RiverNorth Flexible i.e., RiverNorth Flexible and CBH go up and down completely randomly.
Pair Corralation between RiverNorth Flexible and CBH
If you would invest 1,386 in RiverNorth Flexible Municipalome on August 28, 2024 and sell it today you would earn a total of 13.00 from holding RiverNorth Flexible Municipalome or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
RiverNorth Flexible Municipalo vs. CBH
Performance |
| Timeline |
| RiverNorth Flexible |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
RiverNorth Flexible and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RiverNorth Flexible and CBH
The main advantage of trading using opposite RiverNorth Flexible and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RiverNorth Flexible position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH's long position.| RiverNorth Flexible vs. RiverNorth Flexible Municipalome | RiverNorth Flexible vs. Blackrock Muniholdings Ny | RiverNorth Flexible vs. MFS Investment Grade | RiverNorth Flexible vs. Munivest Fund |
| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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