Correlation Between Bbh Intermediate and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Floating Rate 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 Bbh Intermediate and Floating Rate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Floating Rate Fund, you can compare the effects of market volatilities on Bbh Intermediate and Floating Rate 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 Bbh Intermediate with a short position of Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Floating Rate.
Diversification Opportunities for Bbh Intermediate and Floating Rate
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bbh and Floating is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Floating Rate go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Floating Rate
Assuming the 90 days horizon Bbh Intermediate is expected to generate 11.33 times less return on investment than Floating Rate. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 1.23 times less risky than Floating Rate. It trades about 0.04 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Floating Rate Fund on April 24, 2025 and sell it today you would earn a total of 9.00 from holding Floating Rate Fund or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Floating Rate Fund
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Floating Rate |
Bbh Intermediate and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Floating Rate
The main advantage of trading using opposite Bbh Intermediate and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Bbh Intermediate vs. Vanguard Intermediate Term Tax Exempt | Bbh Intermediate vs. Vanguard Intermediate Term Tax Exempt | Bbh Intermediate vs. Tax Exempt Bond | Bbh Intermediate vs. Tax Exempt Bond |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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