Correlation Between Blackstone Loan and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Lendinvest PLC 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 Lendinvest PLC 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 Lendinvest PLC, you can compare the effects of market volatilities on Blackstone Loan and Lendinvest PLC 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 Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Lendinvest PLC.
Diversification Opportunities for Blackstone Loan and Lendinvest PLC
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Lendinvest is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC 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 Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Lendinvest PLC go up and down completely randomly.
Pair Corralation between Blackstone Loan and Lendinvest PLC
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 1.81 times more return on investment than Lendinvest PLC. However, Blackstone Loan is 1.81 times more volatile than Lendinvest PLC. It trades about 0.09 of its potential returns per unit of risk. Lendinvest PLC is currently generating about -0.18 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Lendinvest PLC
Performance |
| Timeline |
| Blackstone Loan Financing |
| Lendinvest PLC |
Blackstone Loan and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Lendinvest PLC
The main advantage of trading using opposite Blackstone Loan and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC'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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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