Correlation Between Blackrock Muniholdings and Abrdn Emerging

Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings and Abrdn Emerging 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 Abrdn Emerging 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 Abrdn Emerging Markets, you can compare the effects of market volatilities on Blackrock Muniholdings and Abrdn Emerging 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 Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Abrdn Emerging.

Diversification Opportunities for Blackrock Muniholdings and Abrdn Emerging

0.0

Correlation Coefficient

Blackrock Muniholdings  Abrdn Emerging

Pay attention - limited upside

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

Pair Corralation between Blackrock Muniholdings and Abrdn Emerging

Considering the 90-day investment horizon Blackrock Muniholdings Ny is expected to under-perform the Abrdn Emerging. But the fund apears to be less risky and, when comparing its historical volatility, Blackrock Muniholdings Ny is 2.15 times less risky than Abrdn Emerging. The fund trades about -0.05 of its potential returns per unit of risk. The Abrdn Emerging Markets is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  514.00  in Abrdn Emerging Markets on December 2, 2024 and sell it today you would lose (1.00) from holding Abrdn Emerging Markets or give up 0.19% of portfolio value over 90 days.

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

Blackrock Muniholdings Ny  vs.  Abrdn Emerging Markets

Blackrock Muniholdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Muniholdings Ny has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy technical indicators, Blackrock Muniholdings is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Abrdn Emerging Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days Abrdn Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable technical and fundamental indicators, Abrdn Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Blackrock Muniholdings and Abrdn Emerging

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

The idea behind Blackrock Muniholdings Ny and Abrdn Emerging Markets 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.