Correlation Between Blackstone and Inception Growth
Can any of the company-specific risk be diversified away by investing in both Blackstone and Inception Growth 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 Inception Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Inception Growth Acquisition, you can compare the effects of market volatilities on Blackstone and Inception Growth 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 Inception Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Inception Growth.
Diversification Opportunities for Blackstone and Inception Growth
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Inception is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Inception Growth Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inception Growth Acq 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 Inception Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inception Growth Acq has no effect on the direction of Blackstone i.e., Blackstone and Inception Growth go up and down completely randomly.
Pair Corralation between Blackstone and Inception Growth
Allowing for the 90-day total investment horizon Blackstone is expected to generate 7.75 times less return on investment than Inception Growth. But when comparing it to its historical volatility, Blackstone Group is 16.29 times less risky than Inception Growth. It trades about 0.33 of its potential returns per unit of risk. Inception Growth Acquisition is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7.13 in Inception Growth Acquisition on August 27, 2024 and sell it today you would earn a total of 0.37 from holding Inception Growth Acquisition or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Blackstone Group vs. Inception Growth Acquisition
Performance |
| Timeline |
| Blackstone Group |
| Inception Growth Acq |
Blackstone and Inception Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Inception Growth
The main advantage of trading using opposite Blackstone and Inception Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Inception Growth 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 Inception Growth will offset losses from the drop in Inception Growth's long position.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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