Correlation Between Alfa Financial and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Alfa Financial 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 Alfa Financial and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and Blackstone Loan Financing, you can compare the effects of market volatilities on Alfa Financial 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 Alfa Financial with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and Blackstone Loan.
Diversification Opportunities for Alfa Financial and Blackstone Loan
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alfa and Blackstone is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software 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 Alfa Financial 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and Blackstone Loan go up and down completely randomly.
Pair Corralation between Alfa Financial and Blackstone Loan
Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 2.26 times more return on investment than Blackstone Loan. However, Alfa Financial is 2.26 times more volatile than Blackstone Loan Financing. It trades about 0.04 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.0 per unit of risk. If you would invest 15,548 in Alfa Financial Software on November 2, 2024 and sell it today you would earn a total of 6,152 from holding Alfa Financial Software or generate 39.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.59% |
| Values | Daily Returns |
Alfa Financial Software vs. Blackstone Loan Financing
Performance |
| Timeline |
| Alfa Financial Software |
| Blackstone Loan Financing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alfa Financial and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and Blackstone Loan
The main advantage of trading using opposite Alfa Financial and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial 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.| Alfa Financial vs. Check Point Software | Alfa Financial vs. Europa Metals | Alfa Financial vs. National Beverage Corp | Alfa Financial vs. CNH Industrial NV |
| Blackstone Loan vs. Seraphim Space Investment | Blackstone Loan vs. Scottish American Investment | Blackstone Loan vs. Livermore Investments Group | Blackstone Loan vs. Kinnevik Investment 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 CEOs Directory module to screen CEOs from public companies around the world.
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