Correlation Between Associated Capital and Blackstone
Can any of the company-specific risk be diversified away by investing in both Associated Capital 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 Associated Capital and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Blackstone Group, you can compare the effects of market volatilities on Associated Capital 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 Associated Capital with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Blackstone.
Diversification Opportunities for Associated Capital and Blackstone
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Associated and Blackstone is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Associated Capital 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 Associated Capital Group 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 Associated Capital i.e., Associated Capital and Blackstone go up and down completely randomly.
Pair Corralation between Associated Capital and Blackstone
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 19.31 times less return on investment than Blackstone. But when comparing it to its historical volatility, Associated Capital Group is 1.47 times less risky than Blackstone. It trades about 0.03 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 16,763 in Blackstone Group on August 23, 2024 and sell it today you would earn a total of 2,638 from holding Blackstone Group or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Blackstone Group
Performance |
| Timeline |
| Associated Capital |
| Blackstone Group |
Associated Capital and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Blackstone
The main advantage of trading using opposite Associated Capital and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital 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.| Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Munivest | Associated Capital vs. SEI Investments | Associated Capital vs. SCOR PK |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |