Correlation Between Cion Investment and Blackrock Muniyield

Can any of the company-specific risk be diversified away by investing in both Cion Investment and Blackrock Muniyield 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 Cion Investment and Blackrock Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cion Investment Corp and Blackrock Muniyield, you can compare the effects of market volatilities on Cion Investment and Blackrock Muniyield 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 Cion Investment with a short position of Blackrock Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cion Investment and Blackrock Muniyield.

Diversification Opportunities for Cion Investment and Blackrock Muniyield

0.05

Correlation Coefficient

Cion Investment  Blackrock Muniyield

Significant diversification

The 3 months correlation between Cion and Blackrock is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cion Investment Corp and Blackrock Muniyield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield and Cion Investment 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 Cion Investment Corp are associated (or correlated) with Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Cion Investment i.e., Cion Investment and Blackrock Muniyield go up and down completely randomly.

Pair Corralation between Cion Investment and Blackrock Muniyield

Given the investment horizon of 90 days Cion Investment Corp is expected to generate 1.98 times more return on investment than Blackrock Muniyield. However, Cion Investment is 1.98 times more volatile than Blackrock Muniyield. It trades about 0.07 of its potential returns per unit of risk. Blackrock Muniyield is currently generating about 0.03 per unit of risk. If you would invest  752.00  in Cion Investment Corp on September 23, 2024 and sell it today you would earn a total of  413.00  from holding Cion Investment Corp or generate 54.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cion Investment Corp  vs.  Blackrock Muniyield

Cion Investment Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cion Investment Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Cion Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Blackrock Muniyield

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Muniyield has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest inconsistent performance, the Fund's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Pair Trading with Cion Investment and Blackrock Muniyield

The main advantage of trading using opposite Cion Investment and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cion Investment position performs unexpectedly, Blackrock Muniyield 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 Blackrock Muniyield will offset losses from the drop in Blackrock Muniyield's long position.

The idea behind Cion Investment Corp and Blackrock Muniyield pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.