Correlation Between Blackstone and Gores Holdings
Can any of the company-specific risk be diversified away by investing in both Blackstone and Gores Holdings 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 Gores Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Gores Holdings IX, you can compare the effects of market volatilities on Blackstone and Gores Holdings 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 Gores Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Gores Holdings.
Diversification Opportunities for Blackstone and Gores Holdings
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Gores is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Gores Holdings IX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gores Holdings IX 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 Gores Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gores Holdings IX has no effect on the direction of Blackstone i.e., Blackstone and Gores Holdings go up and down completely randomly.
Pair Corralation between Blackstone and Gores Holdings
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.04 times more return on investment than Gores Holdings. However, Blackstone is 1.04 times more volatile than Gores Holdings IX. It trades about 0.23 of its potential returns per unit of risk. Gores Holdings IX is currently generating about -0.03 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Gores Holdings IX
Performance |
| Timeline |
| Blackstone Group |
| Gores Holdings IX |
Blackstone and Gores Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Gores Holdings
The main advantage of trading using opposite Blackstone and Gores Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Gores Holdings 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 Gores Holdings will offset losses from the drop in Gores Holdings' long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Gores Holdings vs. Visa Class A | Gores Holdings vs. Diamond Hill Investment | Gores Holdings vs. Distoken Acquisition | Gores Holdings vs. Associated Capital Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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