Correlation Between Pentair PLC and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Pentair PLC 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 Pentair PLC and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pentair PLC and Blackstone Loan Financing, you can compare the effects of market volatilities on Pentair PLC 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 Pentair PLC with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pentair PLC and Blackstone Loan.
Diversification Opportunities for Pentair PLC and Blackstone Loan
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pentair and Blackstone is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Pentair PLC 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 Pentair PLC 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 Pentair PLC 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 Pentair PLC i.e., Pentair PLC and Blackstone Loan go up and down completely randomly.
Pair Corralation between Pentair PLC and Blackstone Loan
Assuming the 90 days trading horizon Pentair PLC is expected to under-perform the Blackstone Loan. In addition to that, Pentair PLC is 4.21 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 -0.18 per unit of volatility. If you would invest 6,500 in Blackstone Loan Financing on October 30, 2024 and sell it today you would lose (100.00) from holding Blackstone Loan Financing or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.78% |
| Values | Daily Returns |
Pentair PLC vs. Blackstone Loan Financing
Performance |
| Timeline |
| Pentair PLC |
| Blackstone Loan Financing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Pentair PLC and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pentair PLC and Blackstone Loan
The main advantage of trading using opposite Pentair PLC and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pentair PLC 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.| Pentair PLC vs. Xeros Technology Group | Pentair PLC vs. Grand Vision Media | Pentair PLC vs. Playtech Plc | Pentair PLC vs. DXC Technology Co |
| Blackstone Loan vs. Mineral Financial Investments | Blackstone Loan vs. Alaska Air Group | Blackstone Loan vs. Vietnam Enterprise Investments | Blackstone Loan vs. Systemair AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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