Correlation Between Blackstone and Ferrovial
Can any of the company-specific risk be diversified away by investing in both Blackstone and Ferrovial 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 Ferrovial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Ferrovial, you can compare the effects of market volatilities on Blackstone and Ferrovial 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 Ferrovial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Ferrovial.
Diversification Opportunities for Blackstone and Ferrovial
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Ferrovial is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Ferrovial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrovial 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 Ferrovial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrovial has no effect on the direction of Blackstone i.e., Blackstone and Ferrovial go up and down completely randomly.
Pair Corralation between Blackstone and Ferrovial
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 | 0.79% |
| Values | Daily Returns |
Blackstone Group vs. Ferrovial
Performance |
| Timeline |
| Blackstone Group |
| Ferrovial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackstone and Ferrovial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Ferrovial
The main advantage of trading using opposite Blackstone and Ferrovial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Ferrovial 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 Ferrovial will offset losses from the drop in Ferrovial's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Ferrovial vs. NETGEAR | Ferrovial vs. Mind Technology | Ferrovial vs. Arrow Electronics | Ferrovial 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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