Correlation Between Blackstone and Iris Energy
Can any of the company-specific risk be diversified away by investing in both Blackstone and Iris Energy 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 Iris Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Iris Energy, you can compare the effects of market volatilities on Blackstone and Iris Energy 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 Iris Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Iris Energy.
Diversification Opportunities for Blackstone and Iris Energy
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Iris is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Iris Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iris Energy 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 Iris Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iris Energy has no effect on the direction of Blackstone i.e., Blackstone and Iris Energy go up and down completely randomly.
Pair Corralation between Blackstone and Iris Energy
Allowing for the 90-day total investment horizon Blackstone is expected to generate 1.6 times less return on investment than Iris Energy. But when comparing it to its historical volatility, Blackstone Group is 6.09 times less risky than Iris Energy. It trades about 0.31 of its potential returns per unit of risk. Iris Energy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 928.00 in Iris Energy on August 23, 2024 and sell it today you would earn a total of 82.00 from holding Iris Energy or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Iris Energy
Performance |
| Timeline |
| Blackstone Group |
| Iris Energy |
Blackstone and Iris Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Iris Energy
The main advantage of trading using opposite Blackstone and Iris Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Iris Energy 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 Iris Energy will offset losses from the drop in Iris Energy's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Iris Energy vs. Merit Medical Systems | Iris Energy vs. CarsalesCom Ltd ADR | Iris Energy vs. Stagwell | Iris Energy vs. Boston Omaha 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |