Correlation Between Blackstone and Eagle Capital
Can any of the company-specific risk be diversified away by investing in both Blackstone and Eagle Capital 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 Eagle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Eagle Capital Growth, you can compare the effects of market volatilities on Blackstone and Eagle Capital 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 Eagle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Eagle Capital.
Diversification Opportunities for Blackstone and Eagle Capital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Eagle is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Eagle Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Capital Growth 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 Eagle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Capital Growth has no effect on the direction of Blackstone i.e., Blackstone and Eagle Capital go up and down completely randomly.
Pair Corralation between Blackstone and Eagle Capital
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.02 times more return on investment than Eagle Capital. However, Blackstone is 1.02 times more volatile than Eagle Capital Growth. It trades about 0.11 of its potential returns per unit of risk. Eagle Capital Growth is currently generating about 0.02 per unit of risk. If you would invest 7,310 in Blackstone Group on August 28, 2024 and sell it today you would earn a total of 11,856 from holding Blackstone Group or generate 162.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.79% |
| Values | Daily Returns |
Blackstone Group vs. Eagle Capital Growth
Performance |
| Timeline |
| Blackstone Group |
| Eagle Capital Growth |
Blackstone and Eagle Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Eagle Capital
The main advantage of trading using opposite Blackstone and Eagle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Eagle Capital 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 Eagle Capital will offset losses from the drop in Eagle Capital's long position.| Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International | Blackstone vs. Barloworld Ltd ADR |
| Eagle Capital vs. Eaton Vance New | Eagle Capital vs. Pimco New York | Eagle Capital vs. Nuveen Amt Free Municipal | Eagle Capital vs. Western Asset Municipal |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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