Correlation Between Blackstone and Ladenburg Thalmann
Can any of the company-specific risk be diversified away by investing in both Blackstone and Ladenburg Thalmann 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 Ladenburg Thalmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Ladenburg Thalmann Financial, you can compare the effects of market volatilities on Blackstone and Ladenburg Thalmann 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 Ladenburg Thalmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Ladenburg Thalmann.
Diversification Opportunities for Blackstone and Ladenburg Thalmann
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Ladenburg is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Ladenburg Thalmann Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Thalmann 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 Ladenburg Thalmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Thalmann has no effect on the direction of Blackstone i.e., Blackstone and Ladenburg Thalmann go up and down completely randomly.
Pair Corralation between Blackstone and Ladenburg Thalmann
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.49 times more return on investment than Ladenburg Thalmann. However, Blackstone Group is 2.03 times less risky than Ladenburg Thalmann. It trades about 0.11 of its potential returns per unit of risk. Ladenburg Thalmann Financial is currently generating about 0.02 per unit of risk. If you would invest 6,999 in Blackstone Group on September 12, 2024 and sell it today you would earn a total of 11,958 from holding Blackstone Group or generate 170.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 29.09% |
| Values | Daily Returns |
Blackstone Group vs. Ladenburg Thalmann Financial
Performance |
| Timeline |
| Blackstone Group |
| Ladenburg Thalmann |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackstone and Ladenburg Thalmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Ladenburg Thalmann
The main advantage of trading using opposite Blackstone and Ladenburg Thalmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Ladenburg Thalmann 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 Ladenburg Thalmann will offset losses from the drop in Ladenburg Thalmann's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |