Correlation Between Blackstone Gso and Western Asset
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Western Asset 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 Gso and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Gso Strategic and Western Asset High, you can compare the effects of market volatilities on Blackstone Gso and Western Asset 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 Gso with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Western Asset.
Diversification Opportunities for Blackstone Gso and Western Asset
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackstone and Western is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Strategic and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Blackstone Gso 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 Gso Strategic are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Western Asset go up and down completely randomly.
Pair Corralation between Blackstone Gso and Western Asset
Considering the 90-day investment horizon Blackstone Gso Strategic is expected to generate 0.85 times more return on investment than Western Asset. However, Blackstone Gso Strategic is 1.18 times less risky than Western Asset. It trades about 0.28 of its potential returns per unit of risk. Western Asset High is currently generating about 0.16 per unit of risk. If you would invest 1,223 in Blackstone Gso Strategic on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Blackstone Gso Strategic or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Gso Strategic vs. Western Asset High
Performance |
| Timeline |
| Blackstone Gso Strategic |
| Western Asset High |
Blackstone Gso and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and Western Asset
The main advantage of trading using opposite Blackstone Gso and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. BlackRock Floating Rate | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. BlackRock Global Opportunities |
| Western Asset vs. Advent Claymore Convertible | Western Asset vs. Blackstone Gso Strategic | Western Asset vs. Western Asset Investment | Western Asset vs. Pioneer Floating Rate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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