Correlation Between IShares Expanded and Blackrock Muniyield

Can any of the company-specific risk be diversified away by investing in both IShares Expanded and Blackrock Muniyield 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 IShares Expanded and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between iShares Expanded Tech and Blackrock Muniyield Investment, you can compare the effects of market volatilities on IShares Expanded and Blackrock Muniyield 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 IShares Expanded with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Expanded and Blackrock Muniyield.

Diversification Opportunities for IShares Expanded and Blackrock Muniyield

0.0

Correlation Coefficient

IShares Expanded  Blackrock Muniyield

Pay attention - limited upside

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

Pair Corralation between IShares Expanded and Blackrock Muniyield

If you would invest  4,934  in iShares Expanded Tech on January 29, 2024 and sell it today you would earn a total of  3,433  from holding iShares Expanded Tech or generate 69.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

iShares Expanded Tech  vs.  Blackrock Muniyield Investment

iShares Expanded Tech

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Expanded Tech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, IShares Expanded is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Blackrock Muniyield

Risk-Adjusted Performance

0 of 100

Very Weak

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.

Pair Trading with IShares Expanded and Blackrock Muniyield

The main advantage of trading using opposite IShares Expanded and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Expanded position performs unexpectedly, Blackrock Muniyield 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 Muniyield will offset losses from the drop in Blackrock Muniyield's long position.

The idea behind iShares Expanded Tech and Blackrock Muniyield Investment 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.