Correlation Between Blackstone Loan and STMicroelectronics
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and STMicroelectronics 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 STMicroelectronics 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 STMicroelectronics NV, you can compare the effects of market volatilities on Blackstone Loan and STMicroelectronics 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 STMicroelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and STMicroelectronics.
Diversification Opportunities for Blackstone Loan and STMicroelectronics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and STMicroelectronics is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and STMicroelectronics NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMicroelectronics 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 STMicroelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMicroelectronics has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and STMicroelectronics go up and down completely randomly.
Pair Corralation between Blackstone Loan and STMicroelectronics
If you would invest 6,400 in Blackstone Loan Financing on October 17, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. STMicroelectronics NV
Performance |
| Timeline |
| Blackstone Loan Financing |
| STMicroelectronics |
Blackstone Loan and STMicroelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and STMicroelectronics
The main advantage of trading using opposite Blackstone Loan and STMicroelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, STMicroelectronics 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 STMicroelectronics will offset losses from the drop in STMicroelectronics' long position.| Blackstone Loan vs. Wheaton Precious Metals | Blackstone Loan vs. Home Depot | Blackstone Loan vs. Future Metals NL | Blackstone Loan vs. Empire Metals Limited |
| STMicroelectronics vs. Blackstone Loan Financing | STMicroelectronics vs. Auto Trader Group | STMicroelectronics vs. Naturhouse Health SA | STMicroelectronics vs. Medical Properties Trust |
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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