Correlation Between Blackstone and Artisan Partners
Can any of the company-specific risk be diversified away by investing in both Blackstone and Artisan Partners 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 Artisan Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Artisan Partners Asset, you can compare the effects of market volatilities on Blackstone and Artisan Partners 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 Artisan Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Artisan Partners.
Diversification Opportunities for Blackstone and Artisan Partners
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackstone and Artisan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset 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 Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of Blackstone i.e., Blackstone and Artisan Partners go up and down completely randomly.
Pair Corralation between Blackstone and Artisan Partners
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.85 times more return on investment than Artisan Partners. However, Blackstone Group is 1.18 times less risky than Artisan Partners. It trades about 0.24 of its potential returns per unit of risk. Artisan Partners Asset is currently generating about 0.2 per unit of risk. If you would invest 17,154 in Blackstone Group on August 31, 2024 and sell it today you would earn a total of 1,748 from holding Blackstone Group or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Artisan Partners Asset
Performance |
| Timeline |
| Blackstone Group |
| Artisan Partners Asset |
Blackstone and Artisan Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Artisan Partners
The main advantage of trading using opposite Blackstone and Artisan Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Artisan Partners 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 Artisan Partners will offset losses from the drop in Artisan Partners' long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Artisan Partners vs. Federated Premier Municipal | Artisan Partners vs. Blackrock Muniyield | Artisan Partners vs. Diamond Hill Investment | Artisan Partners vs. NXG NextGen Infrastructure |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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