Correlation Between Blackstone Gso and Pioneer Municipal

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Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Pioneer Municipal 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 Pioneer Municipal 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 Pioneer Municipal High, you can compare the effects of market volatilities on Blackstone Gso and Pioneer Municipal 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 Pioneer Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Pioneer Municipal.

Diversification Opportunities for Blackstone Gso and Pioneer Municipal

0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Blackstone and Pioneer is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Long and Pioneer Municipal High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Municipal High 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 Pioneer Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Municipal High has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Pioneer Municipal go up and down completely randomly.

Pair Corralation between Blackstone Gso and Pioneer Municipal

Considering the 90-day investment horizon Blackstone Gso Long is expected to generate 0.77 times more return on investment than Pioneer Municipal. However, Blackstone Gso Long is 1.31 times less risky than Pioneer Municipal. It trades about 0.1 of its potential returns per unit of risk. Pioneer Municipal High is currently generating about 0.03 per unit of risk. If you would invest  949.00  in Blackstone Gso Long on November 2, 2024 and sell it today you would earn a total of  331.00  from holding Blackstone Gso Long or generate 34.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Blackstone Gso Long  vs.  Pioneer Municipal High

 Performance 
       Timeline  
Blackstone Gso Long 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Long are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
Pioneer Municipal High 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Pioneer Municipal High has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Pioneer Municipal is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Blackstone Gso and Pioneer Municipal Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blackstone Gso and Pioneer Municipal

The main advantage of trading using opposite Blackstone Gso and Pioneer Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Pioneer Municipal 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 Pioneer Municipal will offset losses from the drop in Pioneer Municipal's long position.
The idea behind Blackstone Gso Long and Pioneer Municipal High pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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