Correlation Between Blackstone and RiverNorthDoubleLine
Can any of the company-specific risk be diversified away by investing in both Blackstone and RiverNorthDoubleLine 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 RiverNorthDoubleLine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and RiverNorthDoubleLine Strategic Opportunity, you can compare the effects of market volatilities on Blackstone and RiverNorthDoubleLine 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 RiverNorthDoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and RiverNorthDoubleLine.
Diversification Opportunities for Blackstone and RiverNorthDoubleLine
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and RiverNorthDoubleLine is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and RiverNorthDoubleLine Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorthDoubleLine 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 RiverNorthDoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorthDoubleLine has no effect on the direction of Blackstone i.e., Blackstone and RiverNorthDoubleLine go up and down completely randomly.
Pair Corralation between Blackstone and RiverNorthDoubleLine
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.68 times more return on investment than RiverNorthDoubleLine. However, Blackstone is 2.68 times more volatile than RiverNorthDoubleLine Strategic Opportunity. It trades about 0.23 of its potential returns per unit of risk. RiverNorthDoubleLine Strategic Opportunity is currently generating about 0.08 per unit of risk. If you would invest 11,778 in Blackstone Group on September 2, 2024 and sell it today you would earn a total of 7,331 from holding Blackstone Group or generate 62.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. RiverNorthDoubleLine Strategic
Performance |
| Timeline |
| Blackstone Group |
| RiverNorthDoubleLine |
Blackstone and RiverNorthDoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and RiverNorthDoubleLine
The main advantage of trading using opposite Blackstone and RiverNorthDoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, RiverNorthDoubleLine 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 RiverNorthDoubleLine will offset losses from the drop in RiverNorthDoubleLine'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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