Correlation Between Federated Municipal and Blrc Sgy
Can any of the company-specific risk be diversified away by investing in both Federated Municipal and Blrc Sgy 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 Federated Municipal and Blrc Sgy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Municipal High and Blrc Sgy Mnp, you can compare the effects of market volatilities on Federated Municipal and Blrc Sgy 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 Federated Municipal with a short position of Blrc Sgy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Municipal and Blrc Sgy.
Diversification Opportunities for Federated Municipal and Blrc Sgy
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Blrc is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Municipal High and Blrc Sgy Mnp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blrc Sgy Mnp and Federated Municipal 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 Federated Municipal High are associated (or correlated) with Blrc Sgy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blrc Sgy Mnp has no effect on the direction of Federated Municipal i.e., Federated Municipal and Blrc Sgy go up and down completely randomly.
Pair Corralation between Federated Municipal and Blrc Sgy
Assuming the 90 days horizon Federated Municipal is expected to generate 1.1 times less return on investment than Blrc Sgy. But when comparing it to its historical volatility, Federated Municipal High is 1.03 times less risky than Blrc Sgy. It trades about 0.42 of its potential returns per unit of risk. Blrc Sgy Mnp is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Blrc Sgy Mnp on July 20, 2025 and sell it today you would earn a total of 60.00 from holding Blrc Sgy Mnp or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Municipal High vs. Blrc Sgy Mnp
Performance |
| Timeline |
| Federated Municipal High |
| Blrc Sgy Mnp |
Federated Municipal and Blrc Sgy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Municipal and Blrc Sgy
The main advantage of trading using opposite Federated Municipal and Blrc Sgy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Municipal position performs unexpectedly, Blrc Sgy 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 Blrc Sgy will offset losses from the drop in Blrc Sgy's long position.| Federated Municipal vs. Dreyfusstandish Global Fixed | Federated Municipal vs. Old Westbury Fixed | Federated Municipal vs. T Rowe Price | Federated Municipal vs. Aqr Long Short Equity |
| Blrc Sgy vs. Bbh Intermediate Municipal | Blrc Sgy vs. Pace Municipal Fixed | Blrc Sgy vs. Blackrock Pa Muni | Blrc Sgy vs. T Rowe Price |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |