Correlation Between Blackstone Loan and TR Property
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and TR Property 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 TR Property 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 TR Property Investment, you can compare the effects of market volatilities on Blackstone Loan and TR Property 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 TR Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and TR Property.
Diversification Opportunities for Blackstone Loan and TR Property
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and TRY is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and TR Property Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TR Property Investment 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 TR Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TR Property Investment has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and TR Property go up and down completely randomly.
Pair Corralation between Blackstone Loan and TR Property
Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 1.81 times more return on investment than TR Property. However, Blackstone Loan is 1.81 times more volatile than TR Property Investment. It trades about 0.29 of its potential returns per unit of risk. TR Property Investment is currently generating about -0.1 per unit of risk. If you would invest 5,750 in Blackstone Loan Financing on September 1, 2024 and sell it today you would earn a total of 750.00 from holding Blackstone Loan Financing or generate 13.04% 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. TR Property Investment
Performance |
| Timeline |
| Blackstone Loan Financing |
| TR Property Investment |
Blackstone Loan and TR Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and TR Property
The main advantage of trading using opposite Blackstone Loan and TR Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, TR Property 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 TR Property will offset losses from the drop in TR Property's long position.| Blackstone Loan vs. TR Property Investment | Blackstone Loan vs. X FAB Silicon Foundries | Blackstone Loan vs. FC Investment Trust | Blackstone Loan vs. PPHE Hotel Group |
| TR Property vs. Toyota Motor Corp | TR Property vs. SoftBank Group Corp | TR Property vs. OTP Bank Nyrt | TR Property vs. Las Vegas Sands |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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