Correlation Between Blackstone and Mars Acquisition
Can any of the company-specific risk be diversified away by investing in both Blackstone and Mars Acquisition 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 Mars Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Mars Acquisition Corp, you can compare the effects of market volatilities on Blackstone and Mars Acquisition 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 Mars Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Mars Acquisition.
Diversification Opportunities for Blackstone and Mars Acquisition
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Mars is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Mars Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mars Acquisition Corp 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 Mars Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mars Acquisition Corp has no effect on the direction of Blackstone i.e., Blackstone and Mars Acquisition go up and down completely randomly.
Pair Corralation between Blackstone and Mars Acquisition
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 7.01 times more return on investment than Mars Acquisition. However, Blackstone is 7.01 times more volatile than Mars Acquisition Corp. It trades about 0.34 of its potential returns per unit of risk. Mars Acquisition Corp is currently generating about 0.1 per unit of risk. If you would invest 16,814 in Blackstone Group on September 2, 2024 and sell it today you would earn a total of 2,295 from holding Blackstone Group or generate 13.65% 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. Mars Acquisition Corp
Performance |
| Timeline |
| Blackstone Group |
| Mars Acquisition Corp |
Blackstone and Mars Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Mars Acquisition
The main advantage of trading using opposite Blackstone and Mars Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Mars Acquisition 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 Mars Acquisition will offset losses from the drop in Mars Acquisition's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Mars Acquisition vs. Mars Acquisition Corp | Mars Acquisition vs. Swiftmerge Acquisition Corp | Mars Acquisition vs. Consilium Acquisition I | Mars Acquisition vs. Israel Acquisitions 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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