Correlation Between Blackrock Muniholdings and First American
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and First American 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 Blackrock Muniholdings and First American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Ny and First American Investment, you can compare the effects of market volatilities on Blackrock Muniholdings and First American 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 Blackrock Muniholdings with a short position of First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and First American.
Diversification Opportunities for Blackrock Muniholdings and First American
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and First is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and First American Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American Investment and Blackrock Muniholdings 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 Blackrock Muniholdings Ny are associated (or correlated) with First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Investment has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and First American go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and First American
Considering the 90-day investment horizon Blackrock Muniholdings Ny is expected to generate 0.58 times more return on investment than First American. However, Blackrock Muniholdings Ny is 1.73 times less risky than First American. It trades about 0.2 of its potential returns per unit of risk. First American Investment is currently generating about -0.01 per unit of risk. If you would invest 950.00 in Blackrock Muniholdings Ny on August 29, 2025 and sell it today you would earn a total of 81.00 from holding Blackrock Muniholdings Ny or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Ny vs. First American Investment
Performance |
| Timeline |
| Blackrock Muniholdings |
| First American Investment |
Blackrock Muniholdings and First American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and First American
The main advantage of trading using opposite Blackrock Muniholdings and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.| Blackrock Muniholdings vs. Aqr Sustainable Long Short | Blackrock Muniholdings vs. Transam Short Term Bond | Blackrock Muniholdings vs. Calvert Short Duration | Blackrock Muniholdings vs. Siit Ultra Short |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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