Correlation Between Blackstone and Azimut Holding
Can any of the company-specific risk be diversified away by investing in both Blackstone and Azimut Holding 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 Azimut Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Azimut Holding SpA, you can compare the effects of market volatilities on Blackstone and Azimut Holding 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 Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Azimut Holding.
Diversification Opportunities for Blackstone and Azimut Holding
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackstone and Azimut is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA 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 Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Blackstone i.e., Blackstone and Azimut Holding go up and down completely randomly.
Pair Corralation between Blackstone and Azimut Holding
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.54 times more return on investment than Azimut Holding. However, Blackstone Group is 1.84 times less risky than Azimut Holding. It trades about 0.24 of its potential returns per unit of risk. Azimut Holding SpA is currently generating about -0.07 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Azimut Holding SpA
Performance |
| Timeline |
| Blackstone Group |
| Azimut Holding SpA |
Blackstone and Azimut Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Azimut Holding
The main advantage of trading using opposite Blackstone and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Azimut Holding 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 Azimut Holding will offset losses from the drop in Azimut Holding's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Azimut Holding vs. Starfleet Innotech | Azimut Holding vs. Flow Capital Corp | Azimut Holding vs. Ameritrans Capital Corp | Azimut Holding vs. Blackhawk Growth Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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