Correlation Between Blackstone Loan and DXC Technology
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and DXC Technology 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 DXC Technology 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 DXC Technology Co, you can compare the effects of market volatilities on Blackstone Loan and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and DXC Technology.
Diversification Opportunities for Blackstone Loan and DXC Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and DXC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and DXC Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and DXC Technology go up and down completely randomly.
Pair Corralation between Blackstone Loan and DXC Technology
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.43 times more return on investment than DXC Technology. However, Blackstone Loan Financing is 2.3 times less risky than DXC Technology. It trades about 0.17 of its potential returns per unit of risk. DXC Technology Co is currently generating about -0.06 per unit of risk. If you would invest 6,100 in Blackstone Loan Financing on September 14, 2024 and sell it today you would earn a total of 300.00 from holding Blackstone Loan Financing or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. DXC Technology Co
Performance |
| Timeline |
| Blackstone Loan Financing |
| DXC Technology |
Blackstone Loan and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and DXC Technology
The main advantage of trading using opposite Blackstone Loan and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Hyundai Motor | Blackstone Loan vs. Reliance Industries Ltd |
| DXC Technology vs. Batm Advanced Communications | DXC Technology vs. Aeorema Communications Plc | DXC Technology vs. Tata Steel Limited | DXC Technology vs. Blackstone Loan Financing |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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