Correlation Between Blackrock Muniholdings and FS KKR

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

By analyzing existing cross correlation between Blackrock Muniholdings New and FS KKR Capital, you can compare the effects of market volatilities on Blackrock Muniholdings and FS KKR 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 FS KKR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and FS KKR.

Diversification Opportunities for Blackrock Muniholdings and FS KKR

-0.46

Correlation Coefficient

Blackrock Muniholdings  FS KKR

Very good diversification

The 3 months correlation between Blackrock and FSK is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings New and FS KKR Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS KKR Capital 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 New are associated (or correlated) with FS KKR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS KKR Capital has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and FS KKR go up and down completely randomly.

Pair Corralation between Blackrock Muniholdings and FS KKR

Considering the 90-day investment horizon Blackrock Muniholdings New is expected to generate 0.38 times more return on investment than FS KKR. However, Blackrock Muniholdings New is 2.62 times less risky than FS KKR. It trades about -0.04 of its potential returns per unit of risk. FS KKR Capital is currently generating about -0.13 per unit of risk. If you would invest  1,094  in Blackrock Muniholdings New on May 5, 2025 and sell it today you would lose (4.00) from holding Blackrock Muniholdings New or give up 0.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Blackrock Muniholdings New  vs.  FS KKR Capital

Blackrock Muniholdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Muniholdings New has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady basic indicators, Blackrock Muniholdings is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

FS KKR Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FS KKR Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, FS KKR may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Blackrock Muniholdings and FS KKR

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

The idea behind Blackrock Muniholdings New and FS KKR Capital 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 Commodity Directory module to find actively traded commodities issued by global exchanges.