Correlation Between Blackstone and Nabors Energy
Can any of the company-specific risk be diversified away by investing in both Blackstone and Nabors 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 Nabors 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 Nabors Energy Transition, you can compare the effects of market volatilities on Blackstone and Nabors 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 Nabors Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Nabors Energy.
Diversification Opportunities for Blackstone and Nabors Energy
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackstone and Nabors is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Nabors Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabors Energy Transition 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 Nabors Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabors Energy Transition has no effect on the direction of Blackstone i.e., Blackstone and Nabors Energy go up and down completely randomly.
Pair Corralation between Blackstone and Nabors Energy
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 7.21 times more return on investment than Nabors Energy. However, Blackstone is 7.21 times more volatile than Nabors Energy Transition. It trades about 0.08 of its potential returns per unit of risk. Nabors Energy Transition is currently generating about 0.07 per unit of risk. If you would invest 9,229 in Blackstone Group on October 25, 2024 and sell it today you would earn a total of 9,048 from holding Blackstone Group or generate 98.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.36% |
| Values | Daily Returns |
Blackstone Group vs. Nabors Energy Transition
Performance |
| Timeline |
| Blackstone Group |
| Nabors Energy Transition |
Blackstone and Nabors Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Nabors Energy
The main advantage of trading using opposite Blackstone and Nabors Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Nabors 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 Nabors Energy will offset losses from the drop in Nabors Energy's long position.| Blackstone vs. MFS Investment Grade | Blackstone vs. Eaton Vance National | Blackstone vs. Nuveen California Select | Blackstone vs. Federated Premier Municipal |
| Nabors Energy vs. PowerUp Acquisition Corp | Nabors Energy vs. Aquagold International | Nabors Energy vs. Morningstar Unconstrained Allocation | Nabors Energy vs. Thrivent High Yield |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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