Correlation Between Blackrock Muniholdings and Tidal Trust

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

Diversification Opportunities for Blackrock Muniholdings and Tidal Trust

-0.69

Correlation Coefficient

Blackrock Muniholdings  Tidal Trust

Excellent diversification

The 3 months correlation between Blackrock and Tidal is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Ny and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II 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 Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Tidal Trust go up and down completely randomly.

Pair Corralation between Blackrock Muniholdings and Tidal Trust

Considering the 90-day investment horizon Blackrock Muniholdings Ny is expected to under-perform the Tidal Trust. But the fund apears to be less risky and, when comparing its historical volatility, Blackrock Muniholdings Ny is 2.12 times less risky than Tidal Trust. The fund trades about -0.08 of its potential returns per unit of risk. The Tidal Trust II is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  3,657  in Tidal Trust II on May 6, 2025 and sell it today you would earn a total of  922.03  from holding Tidal Trust II or generate 25.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Blackrock Muniholdings Ny  vs.  Tidal Trust II

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.

Tidal Trust II

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tidal Trust II are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Tidal Trust showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackrock Muniholdings and Tidal Trust

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

The idea behind Blackrock Muniholdings Ny and Tidal Trust II 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.