Correlation Between AVITA Medical and Blackstone
Can any of the company-specific risk be diversified away by investing in both AVITA Medical and Blackstone 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 AVITA Medical and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVITA Medical and Blackstone Group, you can compare the effects of market volatilities on AVITA Medical and Blackstone 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 AVITA Medical with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVITA Medical and Blackstone.
Diversification Opportunities for AVITA Medical and Blackstone
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVITA and Blackstone is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AVITA Medical and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and AVITA Medical 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 AVITA Medical are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of AVITA Medical i.e., AVITA Medical and Blackstone go up and down completely randomly.
Pair Corralation between AVITA Medical and Blackstone
Assuming the 90 days trading horizon AVITA Medical is expected to generate 2.11 times more return on investment than Blackstone. However, AVITA Medical is 2.11 times more volatile than Blackstone Group. It trades about 0.04 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.09 per unit of risk. If you would invest 155.00 in AVITA Medical on October 11, 2024 and sell it today you would earn a total of 99.00 from holding AVITA Medical or generate 63.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVITA Medical vs. Blackstone Group
Performance |
| Timeline |
| AVITA Medical |
| Blackstone Group |
AVITA Medical and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVITA Medical and Blackstone
The main advantage of trading using opposite AVITA Medical and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVITA Medical position performs unexpectedly, Blackstone 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 will offset losses from the drop in Blackstone's long position.| AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc | AVITA Medical vs. Apple Inc |
| Blackstone vs. Corporate Office Properties | Blackstone vs. Addus HomeCare | Blackstone vs. ENVVENO MEDICAL DL 00001 | Blackstone vs. AVITA Medical |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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