Correlation Between Blackstone Loan and Henderson High
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Henderson High 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 Henderson High 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 Henderson High Income, you can compare the effects of market volatilities on Blackstone Loan and Henderson High 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 Henderson High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Henderson High.
Diversification Opportunities for Blackstone Loan and Henderson High
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackstone and Henderson is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Henderson High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henderson High Income 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 Henderson High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henderson High Income has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Henderson High go up and down completely randomly.
Pair Corralation between Blackstone Loan and Henderson High
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 1.43 times more return on investment than Henderson High. However, Blackstone Loan is 1.43 times more volatile than Henderson High Income. It trades about 0.09 of its potential returns per unit of risk. Henderson High Income is currently generating about 0.06 per unit of risk. If you would invest 5,042 in Blackstone Loan Financing on September 12, 2024 and sell it today you would earn a total of 1,358 from holding Blackstone Loan Financing or generate 26.93% 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. Henderson High Income
Performance |
| Timeline |
| Blackstone Loan Financing |
| Henderson High Income |
Blackstone Loan and Henderson High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Henderson High
The main advantage of trading using opposite Blackstone Loan and Henderson High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Henderson High 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 Henderson High will offset losses from the drop in Henderson High's long position.| Blackstone Loan vs. Ion Beam Applications | Blackstone Loan vs. Extra Space Storage | Blackstone Loan vs. Cars Inc | Blackstone Loan vs. European Metals Holdings |
| Henderson High vs. Blackstone Loan Financing | Henderson High vs. JLEN Environmental Assets | Henderson High vs. Gear4music Plc | Henderson High vs. Ironveld 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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