Correlation Between Blackstone and Pimco Dynamic
Can any of the company-specific risk be diversified away by investing in both Blackstone and Pimco Dynamic 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 Pimco Dynamic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Pimco Dynamic Income, you can compare the effects of market volatilities on Blackstone and Pimco Dynamic 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 Pimco Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Pimco Dynamic.
Diversification Opportunities for Blackstone and Pimco Dynamic
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blackstone and Pimco is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Pimco Dynamic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Dynamic Income 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 Pimco Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Dynamic Income has no effect on the direction of Blackstone i.e., Blackstone and Pimco Dynamic go up and down completely randomly.
Pair Corralation between Blackstone and Pimco Dynamic
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.38 times more return on investment than Pimco Dynamic. However, Blackstone is 2.38 times more volatile than Pimco Dynamic Income. It trades about 0.13 of its potential returns per unit of risk. Pimco Dynamic Income is currently generating about 0.09 per unit of risk. If you would invest 7,830 in Blackstone Group on August 31, 2024 and sell it today you would earn a total of 11,072 from holding Blackstone Group or generate 141.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Pimco Dynamic Income
Performance |
| Timeline |
| Blackstone Group |
| Pimco Dynamic Income |
Blackstone and Pimco Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Pimco Dynamic
The main advantage of trading using opposite Blackstone and Pimco Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Pimco Dynamic 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 Pimco Dynamic will offset losses from the drop in Pimco Dynamic's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Pimco Dynamic vs. Pimco Corporate Income | Pimco Dynamic vs. Guggenheim Strategic Opportunities | Pimco Dynamic vs. Pimco Dynamic Income | Pimco Dynamic vs. Pimco High Income |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets |