Correlation Between Blackstone Loan and Foresight Group
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Foresight 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 Foresight 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 Foresight Group Holdings, you can compare the effects of market volatilities on Blackstone Loan and Foresight 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 Foresight Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Foresight Group.
Diversification Opportunities for Blackstone Loan and Foresight Group
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and Foresight is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Foresight Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foresight Group Holdings 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 Foresight Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foresight Group Holdings has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Foresight Group go up and down completely randomly.
Pair Corralation between Blackstone Loan and Foresight Group
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.74 times more return on investment than Foresight Group. However, Blackstone Loan Financing is 1.36 times less risky than Foresight Group. It trades about 0.09 of its potential returns per unit of risk. Foresight Group Holdings is currently generating about -0.16 per unit of risk. If you would invest 6,200 in Blackstone Loan Financing on September 12, 2024 and sell it today you would earn a total of 200.00 from holding Blackstone Loan Financing or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Foresight Group Holdings
Performance |
| Timeline |
| Blackstone Loan Financing |
| Foresight Group Holdings |
Blackstone Loan and Foresight Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Foresight Group
The main advantage of trading using opposite Blackstone Loan and Foresight Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Foresight 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 Foresight Group will offset losses from the drop in Foresight Group's long position.| Blackstone Loan vs. Grand Vision Media | Blackstone Loan vs. G5 Entertainment AB | Blackstone Loan vs. Catena Media PLC | Blackstone Loan vs. Teradata Corp |
| Foresight Group vs. Playtech Plc | Foresight Group vs. Blackstone Loan Financing | Foresight Group vs. Indutrade AB | Foresight Group vs. Applied Materials |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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