Correlation Between Blackstone and Associated Capital
Can any of the company-specific risk be diversified away by investing in both Blackstone and Associated Capital 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 and Associated Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Associated Capital Group, you can compare the effects of market volatilities on Blackstone and Associated Capital 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 with a short position of Associated Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Associated Capital.
Diversification Opportunities for Blackstone and Associated Capital
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackstone and Associated is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Associated Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Capital and Blackstone 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 Group are associated (or correlated) with Associated Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Capital has no effect on the direction of Blackstone i.e., Blackstone and Associated Capital go up and down completely randomly.
Pair Corralation between Blackstone and Associated Capital
Allowing for the 90-day total investment horizon Blackstone is expected to generate 2.12 times less return on investment than Associated Capital. In addition to that, Blackstone is 1.41 times more volatile than Associated Capital Group. It trades about 0.04 of its total potential returns per unit of risk. Associated Capital Group is currently generating about 0.13 per unit of volatility. If you would invest 3,532 in Associated Capital Group on November 5, 2024 and sell it today you would earn a total of 125.00 from holding Associated Capital Group or generate 3.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Associated Capital Group
Performance |
| Timeline |
| Blackstone Group |
| Associated Capital |
Blackstone and Associated Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Associated Capital
The main advantage of trading using opposite Blackstone and Associated Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Associated Capital 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 Associated Capital will offset losses from the drop in Associated Capital's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
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 CEOs Directory module to screen CEOs from public companies around the world.
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