Correlation Between Blackstone Loan and Telecom Plus
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Telecom Plus 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 Telecom Plus 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 Telecom Plus PLC, you can compare the effects of market volatilities on Blackstone Loan and Telecom Plus 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 Telecom Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Telecom Plus.
Diversification Opportunities for Blackstone Loan and Telecom Plus
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Telecom is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Telecom Plus PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Plus 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 Telecom Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Plus PLC has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Telecom Plus go up and down completely randomly.
Pair Corralation between Blackstone Loan and Telecom Plus
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.78 times more return on investment than Telecom Plus. However, Blackstone Loan Financing is 1.28 times less risky than Telecom Plus. It trades about 0.1 of its potential returns per unit of risk. Telecom Plus PLC is currently generating about 0.06 per unit of risk. If you would invest 4,942 in Blackstone Loan Financing on September 3, 2024 and sell it today you would earn a total of 1,558 from holding Blackstone Loan Financing or generate 31.53% 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. Telecom Plus PLC
Performance |
| Timeline |
| Blackstone Loan Financing |
| Telecom Plus PLC |
Blackstone Loan and Telecom Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Telecom Plus
The main advantage of trading using opposite Blackstone Loan and Telecom Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Telecom Plus 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 Telecom Plus will offset losses from the drop in Telecom Plus' 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 |
| Telecom Plus vs. Charter Communications Cl | Telecom Plus vs. mobilezone holding AG | Telecom Plus vs. Cairo Communication SpA | Telecom Plus vs. Zegona Communications 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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