Correlation Between Blackstone and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Blackstone and Barings BDC 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 Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Barings BDC, you can compare the effects of market volatilities on Blackstone and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Barings BDC.
Diversification Opportunities for Blackstone and Barings BDC
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackstone and Barings is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Blackstone i.e., Blackstone and Barings BDC go up and down completely randomly.
Pair Corralation between Blackstone and Barings BDC
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.21 times more return on investment than Barings BDC. However, Blackstone is 2.21 times more volatile than Barings BDC. It trades about -0.1 of its potential returns per unit of risk. Barings BDC is currently generating about -0.22 per unit of risk. If you would invest 15,707 in Blackstone Group on December 24, 2024 and sell it today you would lose (878.00) from holding Blackstone Group or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Barings BDC
Performance |
| Timeline |
| Blackstone Group |
| Barings BDC |
Blackstone and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Barings BDC
The main advantage of trading using opposite Blackstone and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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