Correlation Between Blackstone Gso and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Virtus AllianzGI 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 Virtus AllianzGI 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 Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Blackstone Gso and Virtus AllianzGI 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 Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Virtus AllianzGI.
Diversification Opportunities for Blackstone Gso and Virtus AllianzGI
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackstone and Virtus is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Long and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con 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 Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Blackstone Gso and Virtus AllianzGI
Considering the 90-day investment horizon Blackstone Gso Long is expected to generate 0.8 times more return on investment than Virtus AllianzGI. However, Blackstone Gso Long is 1.25 times less risky than Virtus AllianzGI. It trades about 0.2 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about -0.09 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. Virtus AllianzGI Convertible
Performance |
| Timeline |
| Blackstone Gso Long |
| Virtus AllianzGI Con |
Blackstone Gso and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and Virtus AllianzGI
The main advantage of trading using opposite Blackstone Gso and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Virtus AllianzGI 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 Virtus AllianzGI will offset losses from the drop in Virtus AllianzGI'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 |
| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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