Correlation Between TINC Comm and Blackstone
Can any of the company-specific risk be diversified away by investing in both TINC Comm 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 TINC Comm and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TINC Comm VA and Blackstone Group, you can compare the effects of market volatilities on TINC Comm 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 TINC Comm with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of TINC Comm and Blackstone.
Diversification Opportunities for TINC Comm and Blackstone
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TINC and Blackstone is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding TINC Comm VA and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and TINC Comm 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 TINC Comm VA 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 TINC Comm i.e., TINC Comm and Blackstone go up and down completely randomly.
Pair Corralation between TINC Comm and Blackstone
Assuming the 90 days horizon TINC Comm VA is expected to under-perform the Blackstone. But the stock apears to be less risky and, when comparing its historical volatility, TINC Comm VA is 2.18 times less risky than Blackstone. The stock trades about -0.01 of its potential returns per unit of risk. The Blackstone Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,517 in Blackstone Group on September 12, 2024 and sell it today you would earn a total of 11,527 from holding Blackstone Group or generate 176.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TINC Comm VA vs. Blackstone Group
Performance |
| Timeline |
| TINC Comm VA |
| Blackstone Group |
TINC Comm and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TINC Comm and Blackstone
The main advantage of trading using opposite TINC Comm and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TINC Comm 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.| TINC Comm vs. Tyson Foods | TINC Comm vs. THAI BEVERAGE | TINC Comm vs. Collins Foods Limited | TINC Comm vs. PREMIER FOODS |
| Blackstone vs. ANTA SPORTS PRODUCT | Blackstone vs. Sterling Construction | Blackstone vs. North American Construction | Blackstone vs. Penta Ocean Construction Co |
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.
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