Correlation Between Blackstone Loan and Telecom Italia
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Telecom Italia 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 Loan and Telecom Italia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Loan Financing and Telecom Italia SpA, you can compare the effects of market volatilities on Blackstone Loan and Telecom Italia 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 Loan with a short position of Telecom Italia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Telecom Italia.
Diversification Opportunities for Blackstone Loan and Telecom Italia
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackstone and Telecom is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Telecom Italia SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Italia SpA and Blackstone Loan 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 Loan Financing are associated (or correlated) with Telecom Italia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Italia SpA has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Telecom Italia go up and down completely randomly.
Pair Corralation between Blackstone Loan and Telecom Italia
If you would invest 29.00 in Telecom Italia SpA on October 20, 2024 and sell it today you would earn a total of 2.00 from holding Telecom Italia SpA or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Telecom Italia SpA
Performance |
| Timeline |
| Blackstone Loan Financing |
| Telecom Italia SpA |
Blackstone Loan and Telecom Italia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Telecom Italia
The main advantage of trading using opposite Blackstone Loan and Telecom Italia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Telecom Italia 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 Telecom Italia will offset losses from the drop in Telecom Italia's long position.| Blackstone Loan vs. Molson Coors Beverage | Blackstone Loan vs. First Class Metals | Blackstone Loan vs. Aeorema Communications Plc | Blackstone Loan vs. URU Metals |
| Telecom Italia vs. Blackstone Loan Financing | Telecom Italia vs. Charter Communications Cl | Telecom Italia vs. CAP LEASE AVIATION | Telecom Italia vs. Gaztransport et Technigaz |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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