Correlation Between Blrc Sgy and Federated Municipal
Can any of the company-specific risk be diversified away by investing in both Blrc Sgy and Federated Municipal 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 Blrc Sgy and Federated Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blrc Sgy Mnp and Federated Municipal High, you can compare the effects of market volatilities on Blrc Sgy and Federated Municipal 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 Blrc Sgy with a short position of Federated Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blrc Sgy and Federated Municipal.
Diversification Opportunities for Blrc Sgy and Federated Municipal
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blrc and Federated is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Blrc Sgy Mnp and Federated Municipal High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Municipal High and Blrc Sgy 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 Blrc Sgy Mnp are associated (or correlated) with Federated Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Municipal High has no effect on the direction of Blrc Sgy i.e., Blrc Sgy and Federated Municipal go up and down completely randomly.
Pair Corralation between Blrc Sgy and Federated Municipal
Assuming the 90 days horizon Blrc Sgy Mnp is expected to generate 1.03 times more return on investment than Federated Municipal. However, Blrc Sgy is 1.03 times more volatile than Federated Municipal High. It trades about 0.46 of its potential returns per unit of risk. Federated Municipal High is currently generating about 0.45 per unit of risk. If you would invest 988.00 in Blrc Sgy Mnp on July 25, 2025 and sell it today you would earn a total of 60.00 from holding Blrc Sgy Mnp or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blrc Sgy Mnp vs. Federated Municipal High
Performance |
| Timeline |
| Blrc Sgy Mnp |
| Federated Municipal High |
Blrc Sgy and Federated Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blrc Sgy and Federated Municipal
The main advantage of trading using opposite Blrc Sgy and Federated Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blrc Sgy position performs unexpectedly, Federated Municipal 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 Federated Municipal will offset losses from the drop in Federated Municipal's long position.| Blrc Sgy vs. Nuveen Large Cap | Blrc Sgy vs. Calvert Large Cap | Blrc Sgy vs. Qs Large Cap | Blrc Sgy vs. Guidemark Large Cap |
| Federated Municipal vs. American Funds Inflation | Federated Municipal vs. Ab Municipal Bond | Federated Municipal vs. Blackrock Inflation Protected | Federated Municipal vs. Inflation Protected Bond Fund |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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