Correlation Between Blackstone and Central Plains
Can any of the company-specific risk be diversified away by investing in both Blackstone and Central Plains 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 Central Plains into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Central Plains Bancshares,, you can compare the effects of market volatilities on Blackstone and Central Plains 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 Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Central Plains.
Diversification Opportunities for Blackstone and Central Plains
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Central is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Central Plains Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Bancs 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 Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Bancs has no effect on the direction of Blackstone i.e., Blackstone and Central Plains go up and down completely randomly.
Pair Corralation between Blackstone and Central Plains
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.19 times more return on investment than Central Plains. However, Blackstone is 1.19 times more volatile than Central Plains Bancshares,. It trades about 0.23 of its potential returns per unit of risk. Central Plains Bancshares, is currently generating about 0.2 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Central Plains Bancshares,
Performance |
| Timeline |
| Blackstone Group |
| Central Plains Bancs |
Blackstone and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Central Plains
The main advantage of trading using opposite Blackstone and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Central Plains vs. KVH Industries | Central Plains vs. Royalty Management Holding | Central Plains vs. Mind Technology | Central Plains vs. Semtech |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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