Correlation Between Argo Group and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Argo Group 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 Argo Group and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and Blackstone Loan Financing, you can compare the effects of market volatilities on Argo Group 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 Argo Group with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and Blackstone Loan.
Diversification Opportunities for Argo Group and Blackstone Loan
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Argo and Blackstone is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited 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 Argo Group 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 Argo Group Limited 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 Argo Group i.e., Argo Group and Blackstone Loan go up and down completely randomly.
Pair Corralation between Argo Group and Blackstone Loan
Assuming the 90 days trading horizon Argo Group is expected to generate 5.97 times less return on investment than Blackstone Loan. In addition to that, Argo Group is 3.94 times more volatile than Blackstone Loan Financing. It trades about 0.01 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.12 per unit of volatility. If you would invest 5,346 in Blackstone Loan Financing on August 30, 2024 and sell it today you would earn a total of 1,154 from holding Blackstone Loan Financing or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Group Limited vs. Blackstone Loan Financing
Performance |
| Timeline |
| Argo Group Limited |
| Blackstone Loan Financing |
Argo Group and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and Blackstone Loan
The main advantage of trading using opposite Argo Group and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group 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.| Argo Group vs. Optima Health plc | Argo Group vs. Spire Healthcare Group | Argo Group vs. Universal Music Group | Argo Group vs. Naturhouse Health SA |
| Blackstone Loan vs. Tungsten West PLC | Blackstone Loan vs. Argo Group Limited | Blackstone Loan vs. Hardide PLC | Blackstone Loan vs. Versarien PLC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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