Correlation Between Blackstone and AMERISAFE
Can any of the company-specific risk be diversified away by investing in both Blackstone and AMERISAFE 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 AMERISAFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and AMERISAFE, you can compare the effects of market volatilities on Blackstone and AMERISAFE 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 AMERISAFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and AMERISAFE.
Diversification Opportunities for Blackstone and AMERISAFE
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and AMERISAFE is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and AMERISAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERISAFE 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 AMERISAFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERISAFE has no effect on the direction of Blackstone i.e., Blackstone and AMERISAFE go up and down completely randomly.
Pair Corralation between Blackstone and AMERISAFE
Allowing for the 90-day total investment horizon Blackstone is expected to generate 1.24 times less return on investment than AMERISAFE. But when comparing it to its historical volatility, Blackstone Group is 2.04 times less risky than AMERISAFE. It trades about 0.35 of its potential returns per unit of risk. AMERISAFE is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,079 in AMERISAFE on August 24, 2024 and sell it today you would earn a total of 728.00 from holding AMERISAFE or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Blackstone Group vs. AMERISAFE
Performance |
| Timeline |
| Blackstone Group |
| AMERISAFE |
Blackstone and AMERISAFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and AMERISAFE
The main advantage of trading using opposite Blackstone and AMERISAFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, AMERISAFE 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 AMERISAFE will offset losses from the drop in AMERISAFE's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| AMERISAFE vs. Assured Guaranty | AMERISAFE vs. MBIA Inc | AMERISAFE vs. Enact Holdings | AMERISAFE vs. ICC Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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