Correlation Between Blackstone and Blackstone Secured
Can any of the company-specific risk be diversified away by investing in both Blackstone and Blackstone Secured 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 Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Blackstone Secured Lending, you can compare the effects of market volatilities on Blackstone and Blackstone Secured 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 Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Blackstone Secured.
Diversification Opportunities for Blackstone and Blackstone Secured
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackstone and Blackstone is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured 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 Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of Blackstone i.e., Blackstone and Blackstone Secured go up and down completely randomly.
Pair Corralation between Blackstone and Blackstone Secured
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.03 times more return on investment than Blackstone Secured. However, Blackstone is 2.03 times more volatile than Blackstone Secured Lending. It trades about 0.1 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.11 per unit of risk. If you would invest 7,443 in Blackstone Group on August 29, 2024 and sell it today you would earn a total of 11,459 from holding Blackstone Group or generate 153.96% 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. Blackstone Secured Lending
Performance |
| Timeline |
| Blackstone Group |
| Blackstone Secured |
Blackstone and Blackstone Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Blackstone Secured
The main advantage of trading using opposite Blackstone and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Blackstone Secured 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 Blackstone Secured will offset losses from the drop in Blackstone Secured's long position.The idea behind Blackstone Group and Blackstone Secured Lending pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Blackstone Secured vs. Carlyle Secured Lending | Blackstone Secured vs. Oaktree Specialty Lending | Blackstone Secured vs. Sixth Street Specialty | Blackstone Secured vs. FS KKR Capital |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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