Correlation Between Blackstone and OneMain Holdings
Can any of the company-specific risk be diversified away by investing in both Blackstone and OneMain Holdings 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 OneMain Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and OneMain Holdings, you can compare the effects of market volatilities on Blackstone and OneMain Holdings 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 OneMain Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and OneMain Holdings.
Diversification Opportunities for Blackstone and OneMain Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackstone and OneMain is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and OneMain Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMain Holdings 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 OneMain Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMain Holdings has no effect on the direction of Blackstone i.e., Blackstone and OneMain Holdings go up and down completely randomly.
Pair Corralation between Blackstone and OneMain Holdings
Allowing for the 90-day total investment horizon Blackstone Group is expected to under-perform the OneMain Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Group is 1.03 times less risky than OneMain Holdings. The stock trades about -0.36 of its potential returns per unit of risk. The OneMain Holdings is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 5,656 in OneMain Holdings on November 27, 2024 and sell it today you would lose (352.00) from holding OneMain Holdings or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. OneMain Holdings
Performance |
| Timeline |
| Blackstone Group |
| OneMain Holdings |
Blackstone and OneMain Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and OneMain Holdings
The main advantage of trading using opposite Blackstone and OneMain Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, OneMain Holdings 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 OneMain Holdings will offset losses from the drop in OneMain Holdings' long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| OneMain Holdings vs. Oaktree Specialty Lending | OneMain Holdings vs. Barings BDC | OneMain Holdings vs. Runway Growth Finance | OneMain Holdings vs. Ally Financial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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