Correlation Between Blackstone and Ares Management
Can any of the company-specific risk be diversified away by investing in both Blackstone and Ares Management 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 Blackstone and Ares Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Ares Management Corp, you can compare the effects of market volatilities on Blackstone and Ares Management 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 Blackstone with a short position of Ares Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Ares Management.
Diversification Opportunities for Blackstone and Ares Management
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackstone and Ares is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Ares Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ares Management Corp and Blackstone 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 Blackstone Group are associated (or correlated) with Ares Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ares Management Corp has no effect on the direction of Blackstone i.e., Blackstone and Ares Management go up and down completely randomly.
Pair Corralation between Blackstone and Ares Management
Assuming the 90 days trading horizon Blackstone Group is expected to generate 0.79 times more return on investment than Ares Management. However, Blackstone Group is 1.26 times less risky than Ares Management. It trades about 0.24 of its potential returns per unit of risk. Ares Management Corp is currently generating about 0.14 per unit of risk. If you would invest 15,848 in Blackstone Group on August 31, 2024 and sell it today you would earn a total of 2,014 from holding Blackstone Group or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Ares Management Corp
Performance |
| Timeline |
| Blackstone Group |
| Ares Management Corp |
Blackstone and Ares Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Ares Management
The main advantage of trading using opposite Blackstone and Ares Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Ares Management 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 Ares Management will offset losses from the drop in Ares Management's long position.| Blackstone vs. TIANDE CHEMICAL | Blackstone vs. GOLD ROAD RES | Blackstone vs. Siamgas And Petrochemicals | Blackstone vs. Silicon Motion Technology |
| Ares Management vs. Ameriprise Financial | Ares Management vs. Superior Plus Corp | Ares Management vs. NMI Holdings | Ares Management vs. Origin Agritech |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |