Correlation Between Macquarie Global and Blackrock Muniholdings

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

By analyzing existing cross correlation between Macquarie Global Infrastructure and Blackrock Muniholdings Quality, you can compare the effects of market volatilities on Macquarie Global and Blackrock Muniholdings 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 Macquarie Global with a short position of Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquarie Global and Blackrock Muniholdings.

Diversification Opportunities for Macquarie Global and Blackrock Muniholdings

0.0

Correlation Coefficient

Macquarie Global  Blackrock Muniholdings

Pay attention - limited upside

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

Pair Corralation between Macquarie Global and Blackrock Muniholdings

If you would invest  978.00  in Blackrock Muniholdings Quality on December 23, 2024 and sell it today you would earn a total of  40.00  from holding Blackrock Muniholdings Quality or generate 4.09% return on investment over 90 days.

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

Macquarie Global Infrastructur  vs.  Blackrock Muniholdings Quality

Macquarie Global Inf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquarie Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Macquarie Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Blackrock Muniholdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackrock Muniholdings Quality are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather sound basic indicators, Blackrock Muniholdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Macquarie Global and Blackrock Muniholdings

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

The idea behind Macquarie Global Infrastructure and Blackrock Muniholdings Quality 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.