Correlation Between Blackstone and Greystone Housing
Can any of the company-specific risk be diversified away by investing in both Blackstone and Greystone Housing 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 Greystone Housing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Greystone Housing Impact, you can compare the effects of market volatilities on Blackstone and Greystone Housing 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 Greystone Housing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Greystone Housing.
Diversification Opportunities for Blackstone and Greystone Housing
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Greystone is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Greystone Housing Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Housing Impact 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 Greystone Housing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Housing Impact has no effect on the direction of Blackstone i.e., Blackstone and Greystone Housing go up and down completely randomly.
Pair Corralation between Blackstone and Greystone Housing
Allowing for the 90-day total investment horizon Blackstone Group is expected to under-perform the Greystone Housing. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Group is 1.22 times less risky than Greystone Housing. The stock trades about -0.2 of its potential returns per unit of risk. The Greystone Housing Impact is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,183 in Greystone Housing Impact on November 18, 2024 and sell it today you would earn a total of 107.00 from holding Greystone Housing Impact or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Greystone Housing Impact
Performance |
| Timeline |
| Blackstone Group |
| Greystone Housing Impact |
Blackstone and Greystone Housing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Greystone Housing
The main advantage of trading using opposite Blackstone and Greystone Housing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Greystone Housing 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 Greystone Housing will offset losses from the drop in Greystone Housing's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Greystone Housing vs. Guild Holdings Co | Greystone Housing vs. Security National Financial | Greystone Housing vs. Encore Capital Group | Greystone Housing vs. PennyMac Finl Svcs |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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