Correlation Between Virtus Global and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Virtus Global 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 Virtus Global and Blackrock Muni into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Global Multi and Blackrock Muni Intermediate, you can compare the effects of market volatilities on Virtus Global 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 Virtus Global with a short position of Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Global and Blackrock Muni.
Diversification Opportunities for Virtus Global and Blackrock Muni
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Blackrock is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Global Multi 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 Virtus Global 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 Virtus Global Multi 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 Virtus Global i.e., Virtus Global and Blackrock Muni go up and down completely randomly.
Pair Corralation between Virtus Global and Blackrock Muni
Considering the 90-day investment horizon Virtus Global Multi is expected to generate 1.04 times more return on investment than Blackrock Muni. However, Virtus Global is 1.04 times more volatile than Blackrock Muni Intermediate. It trades about 0.09 of its potential returns per unit of risk. Blackrock Muni Intermediate is currently generating about 0.07 per unit of risk. If you would invest 616.00 in Virtus Global Multi on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Virtus Global Multi or generate 30.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Global Multi vs. Blackrock Muni Intermediate
Performance |
| Timeline |
| Virtus Global Multi |
| Blackrock Muni Inter |
Virtus Global and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Global and Blackrock Muni
The main advantage of trading using opposite Virtus Global and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Global 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.| Virtus Global vs. Brandywineglobal Globalome Opportunities | Virtus Global vs. RiverNorth Specialty Finance | Virtus Global vs. Western Asset Mortgage | Virtus Global vs. Stone Harbor Emerging |
| Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Eaton Vance Municipal | Blackrock Muni vs. DTF Tax Free | Blackrock Muni vs. Aquagold International |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |