Correlation Between GoldMining and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Blackstone Loan Financing, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Blackstone Loan.
Diversification Opportunities for GoldMining and Blackstone Loan
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoldMining and Blackstone is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining 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 GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Blackstone Loan go up and down completely randomly.
Pair Corralation between GoldMining and Blackstone Loan
Assuming the 90 days trading horizon GoldMining is expected to generate 3.22 times more return on investment than Blackstone Loan. However, GoldMining is 3.22 times more volatile than Blackstone Loan Financing. It trades about 0.01 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.03 per unit of risk. If you would invest 123.00 in GoldMining on August 31, 2024 and sell it today you would lose (3.00) from holding GoldMining or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.67% |
| Values | Daily Returns |
GoldMining vs. Blackstone Loan Financing
Performance |
| Timeline |
| GoldMining |
| Blackstone Loan Financing |
GoldMining and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Blackstone Loan
The main advantage of trading using opposite GoldMining and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. New Residential Investment | GoldMining vs. The Mercantile Investment | GoldMining vs. FC Investment Trust | GoldMining vs. Compal Electronics GDR |
| Blackstone Loan vs. Neometals | Blackstone Loan vs. Coor Service Management | Blackstone Loan vs. Aeorema Communications Plc | Blackstone Loan vs. JLEN Environmental Assets |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |