Correlation Between Blackstone Loan and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and CATLIN GROUP 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 CATLIN GROUP 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 CATLIN GROUP , you can compare the effects of market volatilities on Blackstone Loan and CATLIN GROUP 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 CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and CATLIN GROUP.
Diversification Opportunities for Blackstone Loan and CATLIN GROUP
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and CATLIN is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN GROUP 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 CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and CATLIN GROUP go up and down completely randomly.
Pair Corralation between Blackstone Loan and CATLIN GROUP
Assuming the 90 days trading horizon Blackstone Loan is expected to generate 2.65 times less return on investment than CATLIN GROUP. But when comparing it to its historical volatility, Blackstone Loan Financing is 1.48 times less risky than CATLIN GROUP. It trades about 0.03 of its potential returns per unit of risk. CATLIN GROUP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,900 in CATLIN GROUP on September 23, 2024 and sell it today you would earn a total of 2,500 from holding CATLIN GROUP or generate 36.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. CATLIN GROUP
Performance |
| Timeline |
| Blackstone Loan Financing |
| CATLIN GROUP |
Blackstone Loan and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and CATLIN GROUP
The main advantage of trading using opposite Blackstone Loan and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| Blackstone Loan vs. Flow Traders NV | Blackstone Loan vs. Auto Trader Group | Blackstone Loan vs. Waste Management | Blackstone Loan vs. alstria office REIT AG |
| CATLIN GROUP vs. Blackstone Loan Financing | CATLIN GROUP vs. Public Storage | CATLIN GROUP vs. Kinnevik Investment AB | CATLIN GROUP vs. GlobalData PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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