Correlation Between Applied Blockchain and Blackstone
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain 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 Applied Blockchain and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Blackstone Group, you can compare the effects of market volatilities on Applied Blockchain 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 Applied Blockchain with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Blackstone.
Diversification Opportunities for Applied Blockchain and Blackstone
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Applied and Blackstone is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Applied Blockchain 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 Applied Blockchain 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 Applied Blockchain i.e., Applied Blockchain and Blackstone go up and down completely randomly.
Pair Corralation between Applied Blockchain and Blackstone
Given the investment horizon of 90 days Applied Blockchain is expected to generate 5.77 times more return on investment than Blackstone. However, Applied Blockchain is 5.77 times more volatile than Blackstone Group. It trades about 0.12 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.23 per unit of risk. If you would invest 396.00 in Applied Blockchain on September 1, 2024 and sell it today you would earn a total of 614.00 from holding Applied Blockchain or generate 155.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. Blackstone Group
Performance |
| Timeline |
| Applied Blockchain |
| Blackstone Group |
Applied Blockchain and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Blackstone
The main advantage of trading using opposite Applied Blockchain and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain 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.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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