Correlation Between Auto Trader and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Auto Trader 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 Auto Trader and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auto Trader Group and Blackstone Loan Financing, you can compare the effects of market volatilities on Auto Trader 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 Auto Trader with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auto Trader and Blackstone Loan.
Diversification Opportunities for Auto Trader and Blackstone Loan
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Auto and Blackstone is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Auto Trader Group 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 Auto Trader 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 Auto Trader Group 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 Auto Trader i.e., Auto Trader and Blackstone Loan go up and down completely randomly.
Pair Corralation between Auto Trader and Blackstone Loan
Assuming the 90 days trading horizon Auto Trader Group is expected to under-perform the Blackstone Loan. In addition to that, Auto Trader is 2.26 times more volatile than Blackstone Loan Financing. It trades about -0.35 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about -0.22 per unit of volatility. If you would invest 6,500 in Blackstone Loan Financing on September 24, 2024 and sell it today you would lose (100.00) from holding Blackstone Loan Financing or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auto Trader Group vs. Blackstone Loan Financing
Performance |
| Timeline |
| Auto Trader Group |
| Blackstone Loan Financing |
Auto Trader and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auto Trader and Blackstone Loan
The main advantage of trading using opposite Auto Trader and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auto Trader 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.| Auto Trader vs. Hyundai Motor | Auto Trader vs. Toyota Motor Corp | Auto Trader vs. SoftBank Group Corp | Auto Trader vs. Halyk Bank of |
| Blackstone Loan vs. Flow Traders NV | Blackstone Loan vs. Auto Trader Group | Blackstone Loan vs. Waste Management | Blackstone Loan vs. alstria office REIT AG |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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