Correlation Between City National and Blackrock Muniassets
Can any of the company-specific risk be diversified away by investing in both City National and Blackrock Muniassets 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 City National and Blackrock Muniassets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Blackrock Muniassets, you can compare the effects of market volatilities on City National and Blackrock Muniassets 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 City National with a short position of Blackrock Muniassets. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Blackrock Muniassets.
Diversification Opportunities for City National and Blackrock Muniassets
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between City and Blackrock is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Blackrock Muniassets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniassets and City National 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 City National Rochdale are associated (or correlated) with Blackrock Muniassets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniassets has no effect on the direction of City National i.e., City National and Blackrock Muniassets go up and down completely randomly.
Pair Corralation between City National and Blackrock Muniassets
Assuming the 90 days horizon City National Rochdale is expected to under-perform the Blackrock Muniassets. But the mutual fund apears to be less risky and, when comparing its historical volatility, City National Rochdale is 2.11 times less risky than Blackrock Muniassets. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Blackrock Muniassets is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,179 in Blackrock Muniassets on September 12, 2024 and sell it today you would earn a total of 24.00 from holding Blackrock Muniassets or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Blackrock Muniassets
Performance |
| Timeline |
| City National Rochdale |
| Blackrock Muniassets |
City National and Blackrock Muniassets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Blackrock Muniassets
The main advantage of trading using opposite City National and Blackrock Muniassets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Blackrock Muniassets 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 Muniassets will offset losses from the drop in Blackrock Muniassets' long position.| City National vs. Allianzgi Diversified Income | City National vs. Blackrock Conservative Prprdptfinstttnl | City National vs. Lord Abbett Diversified | City National vs. Wealthbuilder Conservative Allocation |
| Blackrock Muniassets vs. Gmo High Yield | Blackrock Muniassets vs. City National Rochdale | Blackrock Muniassets vs. Pace High Yield | Blackrock Muniassets vs. Janus High Yield 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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