Correlation Between Blackstone Gso and Blackrock Muni
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Blackrock Muni 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 Blackrock Muni 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 Blackrock Muni Intermediate, you can compare the effects of market volatilities on Blackstone Gso and Blackrock Muni 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 Blackrock Muni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Blackrock Muni.
Diversification Opportunities for Blackstone Gso and Blackrock Muni
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Blackrock is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Long and Blackrock Muni Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muni Inter 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 Blackrock Muni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muni Inter has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Blackrock Muni go up and down completely randomly.
Pair Corralation between Blackstone Gso and Blackrock Muni
Considering the 90-day investment horizon Blackstone Gso Long is expected to generate 1.07 times more return on investment than Blackrock Muni. However, Blackstone Gso is 1.07 times more volatile than Blackrock Muni Intermediate. It trades about 0.11 of its potential returns per unit of risk. Blackrock Muni Intermediate is currently generating about 0.06 per unit of risk. If you would invest 896.00 in Blackstone Gso Long on August 24, 2024 and sell it today you would earn a total of 378.00 from holding Blackstone Gso Long or generate 42.19% 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. Blackrock Muni Intermediate
Performance |
| Timeline |
| Blackstone Gso Long |
| Blackrock Muni Inter |
Blackstone Gso and Blackrock Muni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and Blackrock Muni
The main advantage of trading using opposite Blackstone Gso and Blackrock Muni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Blackrock Muni 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 Blackrock Muni will offset losses from the drop in Blackrock Muni's long position.| Blackstone Gso vs. MFS Investment Grade | Blackstone Gso vs. Eaton Vance National | Blackstone Gso vs. Blackrock Muniyield Quality | Blackstone Gso vs. Munivest Fund |
| Blackrock Muni vs. MFS Investment Grade | Blackrock Muni vs. Eaton Vance National | Blackrock Muni vs. Blackrock Muniyield Quality | Blackrock Muni vs. Munivest Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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