Correlation Between Blackstone Loan and Anglo American
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Anglo American 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 Anglo American 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 Anglo American PLC, you can compare the effects of market volatilities on Blackstone Loan and Anglo American 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 Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Anglo American.
Diversification Opportunities for Blackstone Loan and Anglo American
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackstone and Anglo is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Anglo American PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American PLC 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 Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American PLC has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Anglo American go up and down completely randomly.
Pair Corralation between Blackstone Loan and Anglo American
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.97 times more return on investment than Anglo American. However, Blackstone Loan Financing is 1.03 times less risky than Anglo American. It trades about 0.31 of its potential returns per unit of risk. Anglo American PLC is currently generating about -0.08 per unit of risk. If you would invest 5,698 in Blackstone Loan Financing on August 30, 2024 and sell it today you would earn a total of 802.00 from holding Blackstone Loan Financing or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Anglo American PLC
Performance |
| Timeline |
| Blackstone Loan Financing |
| Anglo American PLC |
Blackstone Loan and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Anglo American
The main advantage of trading using opposite Blackstone Loan and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| Blackstone Loan vs. Lendinvest PLC | Blackstone Loan vs. Neometals | Blackstone Loan vs. Albion Technology General | Blackstone Loan vs. Jupiter Fund Management |
| Anglo American vs. Blackrock World Mining | Anglo American vs. Invesco Physical Silver | Anglo American vs. GoldMining | Anglo American vs. Anglo Asian Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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