Correlation Between Blackstone and BlackRock Municipal
Can any of the company-specific risk be diversified away by investing in both Blackstone and BlackRock Municipal 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 BlackRock Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and BlackRock Municipal Income, you can compare the effects of market volatilities on Blackstone and BlackRock Municipal 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 BlackRock Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and BlackRock Municipal.
Diversification Opportunities for Blackstone and BlackRock Municipal
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and BlackRock is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and BlackRock Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Municipal 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 BlackRock Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Municipal has no effect on the direction of Blackstone i.e., Blackstone and BlackRock Municipal go up and down completely randomly.
Pair Corralation between Blackstone and BlackRock Municipal
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 3.45 times more return on investment than BlackRock Municipal. However, Blackstone is 3.45 times more volatile than BlackRock Municipal Income. It trades about 0.13 of its potential returns per unit of risk. BlackRock Municipal Income is currently generating about 0.06 per unit of risk. If you would invest 12,134 in Blackstone Group on August 28, 2024 and sell it today you would earn a total of 7,178 from holding Blackstone Group or generate 59.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. BlackRock Municipal Income
Performance |
| Timeline |
| Blackstone Group |
| BlackRock Municipal |
Blackstone and BlackRock Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and BlackRock Municipal
The main advantage of trading using opposite Blackstone and BlackRock Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, BlackRock Municipal 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 BlackRock Municipal will offset losses from the drop in BlackRock Municipal's long position.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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