Correlation Between Security Federal and Blackrock Muniholdings
Can any of the company-specific risk be diversified away by investing in both Security Federal 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 Security Federal and Blackrock Muniholdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security Federal and Blackrock Muniholdings Ny, you can compare the effects of market volatilities on Security Federal 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 Security Federal with a short position of Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security Federal and Blackrock Muniholdings.
Diversification Opportunities for Security Federal and Blackrock Muniholdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Security and Blackrock is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Security Federal and Blackrock Muniholdings Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings and Security Federal 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 Security Federal 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 Security Federal i.e., Security Federal and Blackrock Muniholdings go up and down completely randomly.
Pair Corralation between Security Federal and Blackrock Muniholdings
Given the investment horizon of 90 days Security Federal is expected to generate 1.31 times more return on investment than Blackrock Muniholdings. However, Security Federal is 1.31 times more volatile than Blackrock Muniholdings Ny. It trades about 0.21 of its potential returns per unit of risk. Blackrock Muniholdings Ny is currently generating about 0.12 per unit of risk. If you would invest 2,701 in Security Federal on August 28, 2024 and sell it today you would earn a total of 99.00 from holding Security Federal or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security Federal vs. Blackrock Muniholdings Ny
Performance |
| Timeline |
| Security Federal |
| Blackrock Muniholdings |
Security Federal and Blackrock Muniholdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security Federal and Blackrock Muniholdings
The main advantage of trading using opposite Security Federal and Blackrock Muniholdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Federal 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.| Security Federal vs. Invesco High Income | Security Federal vs. Blackrock Muniholdings Ny | Security Federal vs. MFS Investment Grade | Security Federal vs. Federated Premier Municipal |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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