Correlation Between Blackstone Loan and BH Macro
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and BH Macro 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 BH Macro 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 BH Macro Limited, you can compare the effects of market volatilities on Blackstone Loan and BH Macro 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 BH Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and BH Macro.
Diversification Opportunities for Blackstone Loan and BH Macro
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and BHMU is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and BH Macro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Macro Limited 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 BH Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Macro Limited has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and BH Macro go up and down completely randomly.
Pair Corralation between Blackstone Loan and BH Macro
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.79 times more return on investment than BH Macro. However, Blackstone Loan Financing is 1.26 times less risky than BH Macro. It trades about 0.03 of its potential returns per unit of risk. BH Macro Limited is currently generating about -0.01 per unit of risk. If you would invest 5,634 in Blackstone Loan Financing on September 3, 2024 and sell it today you would earn a total of 866.00 from holding Blackstone Loan Financing or generate 15.37% 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. BH Macro Limited
Performance |
| Timeline |
| Blackstone Loan Financing |
| BH Macro Limited |
Blackstone Loan and BH Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and BH Macro
The main advantage of trading using opposite Blackstone Loan and BH Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, BH Macro 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 BH Macro will offset losses from the drop in BH Macro's long position.| Blackstone Loan vs. Catalyst Media Group | Blackstone Loan vs. CATLIN GROUP | Blackstone Loan vs. RTW Venture Fund | Blackstone Loan vs. Secure Property Development |
| BH Macro vs. Zegona Communications Plc | BH Macro vs. Tyson Foods Cl | BH Macro vs. Young Cos Brewery | BH Macro vs. MTI Wireless Edge |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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