Correlation Between Charter Communications and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Charter Communications and Blackstone Loan 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 Charter Communications and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charter Communications Cl and Blackstone Loan Financing, you can compare the effects of market volatilities on Charter Communications and Blackstone Loan 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 Charter Communications with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charter Communications and Blackstone Loan.
Diversification Opportunities for Charter Communications and Blackstone Loan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Charter and Blackstone is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Charter Communications Cl and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing and Charter Communications 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 Charter Communications Cl are associated (or correlated) with Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Charter Communications i.e., Charter Communications and Blackstone Loan go up and down completely randomly.
Pair Corralation between Charter Communications and Blackstone Loan
Assuming the 90 days trading horizon Charter Communications Cl is expected to under-perform the Blackstone Loan. In addition to that, Charter Communications is 1.59 times more volatile than Blackstone Loan Financing. It trades about -0.13 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.17 per unit of volatility. If you would invest 6,100 in Blackstone Loan Financing on September 14, 2024 and sell it today you would earn a total of 300.00 from holding Blackstone Loan Financing or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charter Communications Cl vs. Blackstone Loan Financing
Performance |
| Timeline |
| Charter Communications |
| Blackstone Loan Financing |
Charter Communications and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charter Communications and Blackstone Loan
The main advantage of trading using opposite Charter Communications and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charter Communications position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.| Charter Communications vs. Fevertree Drinks Plc | Charter Communications vs. Centaur Media | Charter Communications vs. Liberty Media Corp | Charter Communications vs. XLMedia PLC |
| Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Hyundai Motor | Blackstone Loan vs. Reliance Industries Ltd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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