Correlation Between Blackstone Gso and FAM
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and FAM 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 FAM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Gso Senior and FAM, you can compare the effects of market volatilities on Blackstone Gso and FAM 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 FAM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and FAM.
Diversification Opportunities for Blackstone Gso and FAM
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and FAM is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Senior and FAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAM 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 Senior are associated (or correlated) with FAM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAM has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and FAM go up and down completely randomly.
Pair Corralation between Blackstone Gso and FAM
Considering the 90-day investment horizon Blackstone Gso is expected to generate 1.68 times less return on investment than FAM. But when comparing it to its historical volatility, Blackstone Gso Senior is 1.4 times less risky than FAM. It trades about 0.13 of its potential returns per unit of risk. FAM is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 615.00 in FAM on August 28, 2024 and sell it today you would earn a total of 59.00 from holding FAM or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 64.29% |
| Values | Daily Returns |
Blackstone Gso Senior vs. FAM
Performance |
| Timeline |
| Blackstone Gso Senior |
| FAM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Blackstone Gso and FAM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and FAM
The main advantage of trading using opposite Blackstone Gso and FAM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, FAM 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 FAM will offset losses from the drop in FAM's long position.| Blackstone Gso vs. Blackstone Gso Long | Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackstone Gso Strategic |
| FAM vs. Blackstone Gso Long | FAM vs. Blackstone Gso Senior | FAM vs. Nuveen Floating Rate | FAM vs. Pioneer Floating Rate |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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