Correlation Between Blackstone Loan and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Fidelity National 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 Fidelity National 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 Fidelity National Information, you can compare the effects of market volatilities on Blackstone Loan and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Fidelity National.
Diversification Opportunities for Blackstone Loan and Fidelity National
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and Fidelity is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Fidelity National go up and down completely randomly.
Pair Corralation between Blackstone Loan and Fidelity National
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.34 times more return on investment than Fidelity National. However, Blackstone Loan Financing is 2.98 times less risky than Fidelity National. It trades about -0.18 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.14 per unit of risk. If you would invest 6,500 in Blackstone Loan Financing on October 30, 2024 and sell it today you would lose (100.00) from holding Blackstone Loan Financing or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 77.5% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Fidelity National Information
Performance |
| Timeline |
| Blackstone Loan Financing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Fidelity National |
Blackstone Loan and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Fidelity National
The main advantage of trading using opposite Blackstone Loan and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Blackstone Loan vs. Mineral Financial Investments | Blackstone Loan vs. Alaska Air Group | Blackstone Loan vs. Vietnam Enterprise Investments | Blackstone Loan vs. Systemair AB |
| Fidelity National vs. Ameriprise Financial | Fidelity National vs. Commerzbank AG | Fidelity National vs. St Galler Kantonalbank | Fidelity National vs. Moneta Money Bank |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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