Correlation Between Axos Financial and Blackstone
Can any of the company-specific risk be diversified away by investing in both Axos 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 Axos Financial and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Blackstone Group, you can compare the effects of market volatilities on Axos 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 Axos Financial with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Blackstone.
Diversification Opportunities for Axos Financial and Blackstone
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axos and Blackstone is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Axos 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 Axos Financial 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 Axos Financial i.e., Axos Financial and Blackstone go up and down completely randomly.
Pair Corralation between Axos Financial and Blackstone
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 1.77 times less return on investment than Blackstone. In addition to that, Axos Financial is 1.91 times more volatile than Blackstone Group. It trades about 0.09 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.32 per unit of volatility. If you would invest 13,856 in Blackstone Group on August 23, 2024 and sell it today you would earn a total of 5,545 from holding Blackstone Group or generate 40.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. Blackstone Group
Performance |
| Timeline |
| Axos Financial |
| Blackstone Group |
Axos Financial and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Blackstone
The main advantage of trading using opposite Axos Financial and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos 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.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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