Correlation Between Bbh Intermediate and 1290 High
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and 1290 High 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 1290 High 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 1290 High Yield, you can compare the effects of market volatilities on Bbh Intermediate and 1290 High 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 1290 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and 1290 High.
Diversification Opportunities for Bbh Intermediate and 1290 High
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bbh and 1290 is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and 1290 High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 High Yield 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 1290 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 High Yield has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and 1290 High go up and down completely randomly.
Pair Corralation between Bbh Intermediate and 1290 High
Assuming the 90 days horizon Bbh Intermediate Municipal is expected to generate 0.47 times more return on investment than 1290 High. However, Bbh Intermediate Municipal is 2.13 times less risky than 1290 High. It trades about 0.26 of its potential returns per unit of risk. 1290 High Yield is currently generating about -0.03 per unit of risk. If you would invest 1,037 in Bbh Intermediate Municipal on August 16, 2025 and sell it today you would earn a total of 5.00 from holding Bbh Intermediate Municipal or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. 1290 High Yield
Performance |
| Timeline |
| Bbh Intermediate Mun |
| 1290 High Yield |
Bbh Intermediate and 1290 High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and 1290 High
The main advantage of trading using opposite Bbh Intermediate and 1290 High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, 1290 High 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 1290 High will offset losses from the drop in 1290 High's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Intermediate Municipal |
| 1290 High vs. Intermediate Term Bond Fund | 1290 High vs. T Rowe Price | 1290 High vs. T Rowe Price | 1290 High vs. Bbh Intermediate Municipal |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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