Correlation Between Blackstone Gso and Macquariefirst
Can any of the company-specific risk be diversified away by investing in both Blackstone Gso and Macquariefirst 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 Macquariefirst 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 Macquariefirst Tr Global, you can compare the effects of market volatilities on Blackstone Gso and Macquariefirst 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 Macquariefirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Macquariefirst.
Diversification Opportunities for Blackstone Gso and Macquariefirst
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Macquariefirst is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Senior and Macquariefirst Tr Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquariefirst Tr Global 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 Macquariefirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquariefirst Tr Global has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Macquariefirst go up and down completely randomly.
Pair Corralation between Blackstone Gso and Macquariefirst
Considering the 90-day investment horizon Blackstone Gso Senior is expected to generate 0.56 times more return on investment than Macquariefirst. However, Blackstone Gso Senior is 1.79 times less risky than Macquariefirst. It trades about 0.16 of its potential returns per unit of risk. Macquariefirst Tr Global is currently generating about 0.07 per unit of risk. If you would invest 1,069 in Blackstone Gso Senior on August 31, 2024 and sell it today you would earn a total of 396.00 from holding Blackstone Gso Senior or generate 37.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 86.9% |
| Values | Daily Returns |
Blackstone Gso Senior vs. Macquariefirst Tr Global
Performance |
| Timeline |
| Blackstone Gso Senior |
| Macquariefirst Tr Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Blackstone Gso and Macquariefirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Gso and Macquariefirst
The main advantage of trading using opposite Blackstone Gso and Macquariefirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, Macquariefirst 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 Macquariefirst will offset losses from the drop in Macquariefirst'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 |
| Macquariefirst vs. MFS High Yield | Macquariefirst vs. MFS Investment Grade | Macquariefirst vs. MFS Municipal Income | Macquariefirst vs. DTF Tax Free |
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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