Correlation Between Blackstone Loan and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Wheaton Precious 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 Wheaton Precious 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 Wheaton Precious Metals, you can compare the effects of market volatilities on Blackstone Loan and Wheaton Precious 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 Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Wheaton Precious.
Diversification Opportunities for Blackstone Loan and Wheaton Precious
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackstone and Wheaton is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals 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 Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Wheaton Precious go up and down completely randomly.
Pair Corralation between Blackstone Loan and Wheaton Precious
Assuming the 90 days trading horizon Blackstone Loan is expected to generate 3.41 times less return on investment than Wheaton Precious. But when comparing it to its historical volatility, Blackstone Loan Financing is 2.33 times less risky than Wheaton Precious. It trades about 0.03 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 315,799 in Wheaton Precious Metals on August 30, 2024 and sell it today you would earn a total of 169,701 from holding Wheaton Precious Metals or generate 53.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Blackstone Loan Financing vs. Wheaton Precious Metals
Performance |
| Timeline |
| Blackstone Loan Financing |
| Wheaton Precious Metals |
Blackstone Loan and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Loan and Wheaton Precious
The main advantage of trading using opposite Blackstone Loan and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Loan position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| Blackstone Loan vs. Tungsten West PLC | Blackstone Loan vs. Argo Group Limited | Blackstone Loan vs. Hardide PLC | Blackstone Loan vs. Versarien PLC |
| Wheaton Precious vs. Givaudan SA | Wheaton Precious vs. Antofagasta PLC | Wheaton Precious vs. Centamin PLC | Wheaton Precious vs. Atalaya Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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