Correlation Between COREBRIDGE FINANCIAL and Blackstone
Can any of the company-specific risk be diversified away by investing in both COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COREBRIDGE FINANCIAL INC and Blackstone Group, you can compare the effects of market volatilities on COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of COREBRIDGE FINANCIAL and Blackstone.
Diversification Opportunities for COREBRIDGE FINANCIAL and Blackstone
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COREBRIDGE and Blackstone is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding COREBRIDGE FINANCIAL INC and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and COREBRIDGE 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 COREBRIDGE FINANCIAL INC 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 COREBRIDGE FINANCIAL i.e., COREBRIDGE FINANCIAL and Blackstone go up and down completely randomly.
Pair Corralation between COREBRIDGE FINANCIAL and Blackstone
Assuming the 90 days horizon COREBRIDGE FINANCIAL INC is expected to generate 0.68 times more return on investment than Blackstone. However, COREBRIDGE FINANCIAL INC is 1.47 times less risky than Blackstone. It trades about 0.3 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.01 per unit of risk. If you would invest 2,980 in COREBRIDGE FINANCIAL INC on November 6, 2024 and sell it today you would earn a total of 300.00 from holding COREBRIDGE FINANCIAL INC or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COREBRIDGE FINANCIAL INC vs. Blackstone Group
Performance |
| Timeline |
| COREBRIDGE FINANCIAL INC |
| Blackstone Group |
COREBRIDGE FINANCIAL and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COREBRIDGE FINANCIAL and Blackstone
The main advantage of trading using opposite COREBRIDGE FINANCIAL and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COREBRIDGE FINANCIAL 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.| COREBRIDGE FINANCIAL vs. Federal Agricultural Mortgage | COREBRIDGE FINANCIAL vs. North American Construction | COREBRIDGE FINANCIAL vs. CAL MAINE FOODS | COREBRIDGE FINANCIAL vs. Dairy Farm International |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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