Correlation Between Blackstone Loan and Aston Martin
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Aston Martin 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 Aston Martin 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 Aston Martin Lagonda, you can compare the effects of market volatilities on Blackstone Loan and Aston Martin 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 Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Aston Martin.
Diversification Opportunities for Blackstone Loan and Aston Martin
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Aston is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda 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 Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Aston Martin go up and down completely randomly.
Pair Corralation between Blackstone Loan and Aston Martin
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.37 times more return on investment than Aston Martin. However, Blackstone Loan Financing is 2.72 times less risky than Aston Martin. It trades about 0.07 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.13 per unit of risk. If you would invest 6,300 in Blackstone Loan Financing on September 15, 2024 and sell it today you would earn a total of 100.00 from holding Blackstone Loan Financing or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Aston Martin Lagonda
Performance |
| Timeline |
| Blackstone Loan Financing |
| Aston Martin Lagonda |
Blackstone Loan and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Aston Martin
The main advantage of trading using opposite Blackstone Loan and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin'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 |
| Aston Martin vs. Ross Stores | Aston Martin vs. Morgan Advanced Materials | Aston Martin vs. MoneysupermarketCom Group PLC | Aston Martin 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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