Correlation Between BlackRock Floating and Blackstone Gso
Can any of the company-specific risk be diversified away by investing in both BlackRock Floating and Blackstone Gso 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 BlackRock Floating and Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Floating Rate and Blackstone Gso Long, you can compare the effects of market volatilities on BlackRock Floating and Blackstone Gso 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 BlackRock Floating with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Floating and Blackstone Gso.
Diversification Opportunities for BlackRock Floating and Blackstone Gso
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BlackRock and Blackstone is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Floating Rate and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long and BlackRock Floating 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 BlackRock Floating Rate are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of BlackRock Floating i.e., BlackRock Floating and Blackstone Gso go up and down completely randomly.
Pair Corralation between BlackRock Floating and Blackstone Gso
Considering the 90-day investment horizon BlackRock Floating Rate is expected to generate 1.05 times more return on investment than Blackstone Gso. However, BlackRock Floating is 1.05 times more volatile than Blackstone Gso Long. It trades about 0.13 of its potential returns per unit of risk. Blackstone Gso Long is currently generating about 0.1 per unit of risk. If you would invest 1,236 in BlackRock Floating Rate on August 28, 2024 and sell it today you would earn a total of 63.00 from holding BlackRock Floating Rate or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock Floating Rate vs. Blackstone Gso Long
Performance |
| Timeline |
| BlackRock Floating Rate |
| Blackstone Gso Long |
BlackRock Floating and Blackstone Gso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock Floating and Blackstone Gso
The main advantage of trading using opposite BlackRock Floating and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Floating position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso's long position.| BlackRock Floating vs. MFS Investment Grade | BlackRock Floating vs. Invesco High Income | BlackRock Floating vs. Eaton Vance National | BlackRock Floating vs. Nuveen California Select |
| Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackrock International Growth | Blackstone Gso vs. BlackRock Municipal Income |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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