Correlation Between Blackrock Muniyield and Amazon

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Can any of the company-specific risk be diversified away by investing in both Blackrock Muniyield and Amazon 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 Blackrock Muniyield and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniyield Investment and Amazon Inc, you can compare the effects of market volatilities on Blackrock Muniyield and Amazon 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 Blackrock Muniyield with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniyield and Amazon.

Diversification Opportunities for Blackrock Muniyield and Amazon

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Blackrock and Amazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock MuniYield Investment and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Blackrock Muniyield 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 Blackrock Muniyield Investment are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Blackrock Muniyield i.e., Blackrock Muniyield and Amazon go up and down completely randomly.

Pair Corralation between Blackrock Muniyield and Amazon

If you would invest  17,354  in Amazon Inc on December 29, 2023 and sell it today you would earn a total of  629.00  from holding Amazon Inc or generate 3.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

BlackRock MuniYield Investment  vs.  Amazon Inc

 Performance 
       Timeline  
Blackrock Muniyield 

Risk-Adjusted Performance

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Over the last 90 days Blackrock Muniyield Investment has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Blackrock Muniyield is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Amazon Inc 

Risk-Adjusted Performance

13 of 100

 
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Good
Compared to the overall equity markets, risk-adjusted returns on investments in Amazon Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Amazon displayed solid returns over the last few months and may actually be approaching a breakup point.

Blackrock Muniyield and Amazon Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blackrock Muniyield and Amazon

The main advantage of trading using opposite Blackrock Muniyield and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniyield position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.
The idea behind Blackrock Muniyield Investment and Amazon Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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