Correlation Between Blackrock Muni and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni and Virtus AllianzGI 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 Muni and Virtus AllianzGI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muni Intermediate and Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Blackrock Muni and Virtus AllianzGI 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 Muni with a short position of Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Virtus AllianzGI.
Diversification Opportunities for Blackrock Muni and Virtus AllianzGI
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackrock and Virtus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con and Blackrock Muni 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 Muni Intermediate are associated (or correlated) with Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Blackrock Muni i.e., Blackrock Muni and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Blackrock Muni and Virtus AllianzGI
Considering the 90-day investment horizon Blackrock Muni Intermediate is expected to generate 1.53 times more return on investment than Virtus AllianzGI. However, Blackrock Muni is 1.53 times more volatile than Virtus AllianzGI Convertible. It trades about -0.16 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about -0.3 per unit of risk. If you would invest 1,245 in Blackrock Muni Intermediate on September 26, 2024 and sell it today you would lose (26.00) from holding Blackrock Muni Intermediate or give up 2.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Blackrock Muni Intermediate vs. Virtus AllianzGI Convertible
Performance |
Timeline |
Blackrock Muni Inter |
Virtus AllianzGI Con |
Blackrock Muni and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackrock Muni and Virtus AllianzGI
The main advantage of trading using opposite Blackrock Muni and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni position performs unexpectedly, Virtus AllianzGI 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 Virtus AllianzGI will offset losses from the drop in Virtus AllianzGI's long position.Blackrock Muni vs. Blackrock Muniyield | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Blackrock Muniholdings Quality |
Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Utility | Virtus AllianzGI vs. The Gabelli Multimedia | Virtus AllianzGI vs. Tri Continental PFD |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |