Correlation Between BlackRock Intermediate and JIB

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

By analyzing existing cross correlation between BlackRock Intermediate Muni and JIB, you can compare the effects of market volatilities on BlackRock Intermediate and JIB 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 Intermediate with a short position of JIB. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Intermediate and JIB.

Diversification Opportunities for BlackRock Intermediate and JIB

0.0

Correlation Coefficient

BlackRock Intermediate  JIB

Pay attention - limited upside

The 3 months correlation between BlackRock and JIB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Intermediate Muni and JIB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIB and BlackRock 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 BlackRock Intermediate Muni are associated (or correlated) with JIB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIB has no effect on the direction of BlackRock Intermediate i.e., BlackRock Intermediate and JIB go up and down completely randomly.

Pair Corralation between BlackRock Intermediate and JIB

If you would invest  2,342  in BlackRock Intermediate Muni on December 19, 2024 and sell it today you would earn a total of  29.00  from holding BlackRock Intermediate Muni or generate 1.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BlackRock Intermediate Muni  vs.  JIB

BlackRock Intermediate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Intermediate Muni are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable primary indicators, BlackRock Intermediate is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

JIB

Risk-Adjusted Performance

Very Weak

Over the last 90 days JIB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, JIB is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BlackRock Intermediate and JIB

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

The idea behind BlackRock Intermediate Muni and JIB 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.