Correlation Between Blackstone and Chorus Aviation
Can any of the company-specific risk be diversified away by investing in both Blackstone and Chorus Aviation 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 Chorus Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Chorus Aviation, you can compare the effects of market volatilities on Blackstone and Chorus Aviation 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 Chorus Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Chorus Aviation.
Diversification Opportunities for Blackstone and Chorus Aviation
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackstone and Chorus is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Chorus Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chorus Aviation 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 Chorus Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chorus Aviation has no effect on the direction of Blackstone i.e., Blackstone and Chorus Aviation go up and down completely randomly.
Pair Corralation between Blackstone and Chorus Aviation
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.84 times more return on investment than Chorus Aviation. However, Blackstone Group is 1.19 times less risky than Chorus Aviation. It trades about 0.23 of its potential returns per unit of risk. Chorus Aviation is currently generating about 0.15 per unit of risk. If you would invest 11,791 in Blackstone Group on September 1, 2024 and sell it today you would earn a total of 7,318 from holding Blackstone Group or generate 62.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Blackstone Group vs. Chorus Aviation
Performance |
| Timeline |
| Blackstone Group |
| Chorus Aviation |
Blackstone and Chorus Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Chorus Aviation
The main advantage of trading using opposite Blackstone and Chorus Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Chorus Aviation 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 Chorus Aviation will offset losses from the drop in Chorus Aviation's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Chorus Aviation vs. Joby Aviation | Chorus Aviation vs. Wheels Up Experience | Chorus Aviation vs. AerSale Corp | Chorus Aviation vs. Grupo Aeroportuario del |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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