Correlation Between Blackstone and Perceptive Capital
Can any of the company-specific risk be diversified away by investing in both Blackstone and Perceptive Capital 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 Perceptive Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Perceptive Capital Solutions, you can compare the effects of market volatilities on Blackstone and Perceptive Capital 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 Perceptive Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Perceptive Capital.
Diversification Opportunities for Blackstone and Perceptive Capital
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Perceptive is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Perceptive Capital Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perceptive Capital 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 Perceptive Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perceptive Capital has no effect on the direction of Blackstone i.e., Blackstone and Perceptive Capital go up and down completely randomly.
Pair Corralation between Blackstone and Perceptive Capital
Allowing for the 90-day total investment horizon Blackstone Group is expected to under-perform the Perceptive Capital. In addition to that, Blackstone is 9.93 times more volatile than Perceptive Capital Solutions. It trades about -0.31 of its total potential returns per unit of risk. Perceptive Capital Solutions is currently generating about 0.25 per unit of volatility. If you would invest 1,018 in Perceptive Capital Solutions on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Perceptive Capital Solutions or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Perceptive Capital Solutions
Performance |
| Timeline |
| Blackstone Group |
| Perceptive Capital |
Blackstone and Perceptive Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Perceptive Capital
The main advantage of trading using opposite Blackstone and Perceptive Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Perceptive Capital 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 Perceptive Capital will offset losses from the drop in Perceptive Capital's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Perceptive Capital vs. ScanSource | Perceptive Capital vs. High Performance Beverages | Perceptive Capital vs. Archrock | Perceptive Capital vs. Safety Shot |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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