Correlation Between Blackstone and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Blackstone and Goldman Sachs 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 Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Goldman Sachs BDC, you can compare the effects of market volatilities on Blackstone and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Goldman Sachs.
Diversification Opportunities for Blackstone and Goldman Sachs
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and Goldman is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Goldman Sachs BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs BDC 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs BDC has no effect on the direction of Blackstone i.e., Blackstone and Goldman Sachs go up and down completely randomly.
Pair Corralation between Blackstone and Goldman Sachs
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.58 times more return on investment than Goldman Sachs. However, Blackstone is 1.58 times more volatile than Goldman Sachs BDC. It trades about 0.33 of its potential returns per unit of risk. Goldman Sachs BDC is currently generating about -0.13 per unit of risk. If you would invest 16,997 in Blackstone Group on August 28, 2024 and sell it today you would earn a total of 2,315 from holding Blackstone Group or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Goldman Sachs BDC
Performance |
| Timeline |
| Blackstone Group |
| Goldman Sachs BDC |
Blackstone and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Goldman Sachs
The main advantage of trading using opposite Blackstone and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
| Goldman Sachs vs. Carlyle Secured Lending | Goldman Sachs vs. Sixth Street Specialty | Goldman Sachs vs. Golub Capital BDC | Goldman Sachs vs. Fidus Investment Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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