Correlation Between Blackstone Gso and Western Asset
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Western Asset 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 Gso and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Gso Long and Western Asset Mortgage, you can compare the effects of market volatilities on Blackstone Gso and Western Asset 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 Gso with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Western Asset.
Diversification Opportunities for Blackstone Gso and Western Asset
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackstone and Western is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Long and Western Asset Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Mortgage and Blackstone Gso 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 Gso Long are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Mortgage has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Western Asset go up and down completely randomly.
Pair Corralation between Blackstone Gso and Western Asset
Considering the 90-day investment horizon Blackstone Gso Long is expected to generate 1.07 times more return on investment than Western Asset. However, Blackstone Gso is 1.07 times more volatile than Western Asset Mortgage. It trades about 0.24 of its potential returns per unit of risk. Western Asset Mortgage is currently generating about 0.1 per unit of risk. If you would invest 1,250 in Blackstone Gso Long on August 28, 2024 and sell it today you would earn a total of 38.00 from holding Blackstone Gso Long or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Gso Long vs. Western Asset Mortgage
Performance |
| Timeline |
| Blackstone Gso Long |
| Western Asset Mortgage |
Blackstone Gso and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and Western Asset
The main advantage of trading using opposite Blackstone Gso and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackrock International Growth | Blackstone Gso vs. BlackRock Municipal Income |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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