Correlation Between Blackstone Loan and Fresenius Medical
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Fresenius Medical 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 Fresenius Medical 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 Fresenius Medical Care, you can compare the effects of market volatilities on Blackstone Loan and Fresenius Medical 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 Fresenius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Fresenius Medical.
Diversification Opportunities for Blackstone Loan and Fresenius Medical
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Fresenius is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Fresenius Medical Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius Medical Care 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 Fresenius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius Medical Care has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Fresenius Medical go up and down completely randomly.
Pair Corralation between Blackstone Loan and Fresenius Medical
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.62 times more return on investment than Fresenius Medical. However, Blackstone Loan Financing is 1.61 times less risky than Fresenius Medical. It trades about 0.1 of its potential returns per unit of risk. Fresenius Medical Care is currently generating about 0.04 per unit of risk. If you would invest 4,942 in Blackstone Loan Financing on September 3, 2024 and sell it today you would earn a total of 1,558 from holding Blackstone Loan Financing or generate 31.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Fresenius Medical Care
Performance |
| Timeline |
| Blackstone Loan Financing |
| Fresenius Medical Care |
Blackstone Loan and Fresenius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Fresenius Medical
The main advantage of trading using opposite Blackstone Loan and Fresenius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Fresenius Medical 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 Fresenius Medical will offset losses from the drop in Fresenius Medical's long position.| Blackstone Loan vs. Catalyst Media Group | Blackstone Loan vs. CATLIN GROUP | Blackstone Loan vs. RTW Venture Fund | Blackstone Loan vs. Secure Property Development |
| Fresenius Medical vs. Catalyst Media Group | Fresenius Medical vs. CATLIN GROUP | Fresenius Medical vs. RTW Venture Fund | Fresenius Medical vs. Secure Property Development |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |