Correlation Between Blackstone Loan and Costco Wholesale
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Costco Wholesale 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 Costco Wholesale 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 Costco Wholesale Corp, you can compare the effects of market volatilities on Blackstone Loan and Costco Wholesale 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 Costco Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Costco Wholesale.
Diversification Opportunities for Blackstone Loan and Costco Wholesale
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Costco is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Costco Wholesale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Costco Wholesale Corp 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 Costco Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Costco Wholesale Corp has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Costco Wholesale go up and down completely randomly.
Pair Corralation between Blackstone Loan and Costco Wholesale
If you would invest 6,400 in Blackstone Loan Financing on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Blackstone Loan Financing or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Costco Wholesale Corp
Performance |
| Timeline |
| Blackstone Loan Financing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Costco Wholesale Corp |
Blackstone Loan and Costco Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Costco Wholesale
The main advantage of trading using opposite Blackstone Loan and Costco Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Costco Wholesale 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 Costco Wholesale will offset losses from the drop in Costco Wholesale's long position.| Blackstone Loan vs. Toyota Motor Corp | Blackstone Loan vs. SoftBank Group Corp | Blackstone Loan vs. OTP Bank Nyrt | Blackstone Loan vs. ONEOK Inc |
| Costco Wholesale vs. Gamma Communications PLC | Costco Wholesale vs. Spirent Communications plc | Costco Wholesale vs. URU Metals | Costco Wholesale vs. Verizon Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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