Correlation Between Blackstone and Everest
Can any of the company-specific risk be diversified away by investing in both Blackstone and Everest 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 Everest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Everest Group, you can compare the effects of market volatilities on Blackstone and Everest 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 Everest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Everest.
Diversification Opportunities for Blackstone and Everest
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Everest is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Everest Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everest Group 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 Everest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everest Group has no effect on the direction of Blackstone i.e., Blackstone and Everest go up and down completely randomly.
Pair Corralation between Blackstone and Everest
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.76 times more return on investment than Everest. However, Blackstone Group is 1.32 times less risky than Everest. It trades about 0.31 of its potential returns per unit of risk. Everest Group is currently generating about -0.04 per unit of risk. If you would invest 16,763 in Blackstone Group on August 23, 2024 and sell it today you would earn a total of 1,740 from holding Blackstone Group or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Everest Group
Performance |
| Timeline |
| Blackstone Group |
| Everest Group |
Blackstone and Everest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Everest
The main advantage of trading using opposite Blackstone and Everest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Everest 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 Everest will offset losses from the drop in Everest's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Everest vs. Maiden Holdings | Everest vs. Reinsurance Group of | Everest vs. Oxbridge Re Holdings | Everest vs. Greenlight Capital Re |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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