Correlation Between Blackstone Gso and Gabelli Multimedia
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Gabelli Multimedia 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 Gabelli Multimedia 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 The Gabelli Multimedia, you can compare the effects of market volatilities on Blackstone Gso and Gabelli Multimedia 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 Gabelli Multimedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Gabelli Multimedia.
Diversification Opportunities for Blackstone Gso and Gabelli Multimedia
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackstone and Gabelli is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Long and The Gabelli Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Gabelli Multimedia 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 Gabelli Multimedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Gabelli Multimedia has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Gabelli Multimedia go up and down completely randomly.
Pair Corralation between Blackstone Gso and Gabelli Multimedia
Considering the 90-day investment horizon Blackstone Gso Long is expected to generate 1.41 times more return on investment than Gabelli Multimedia. However, Blackstone Gso is 1.41 times more volatile than The Gabelli Multimedia. It trades about 0.2 of its potential returns per unit of risk. The Gabelli Multimedia is currently generating about 0.03 per unit of risk. If you would invest 1,253 in Blackstone Gso Long on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Blackstone Gso Long or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Gso Long vs. The Gabelli Multimedia
Performance |
| Timeline |
| Blackstone Gso Long |
| The Gabelli Multimedia |
Blackstone Gso and Gabelli Multimedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and Gabelli Multimedia
The main advantage of trading using opposite Blackstone Gso and Gabelli Multimedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Gabelli Multimedia 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 Gabelli Multimedia will offset losses from the drop in Gabelli Multimedia'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 |
| Gabelli Multimedia vs. Virtus AllianzGI Convertible | Gabelli Multimedia vs. The Gabelli Equity | Gabelli Multimedia vs. Oxford Lane Capital | Gabelli Multimedia vs. The Gabelli Utility |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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