Correlation Between Blackstone and 360 Finance
Can any of the company-specific risk be diversified away by investing in both Blackstone and 360 Finance 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 360 Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and 360 Finance, you can compare the effects of market volatilities on Blackstone and 360 Finance 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 360 Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and 360 Finance.
Diversification Opportunities for Blackstone and 360 Finance
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and 360 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and 360 Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Finance 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 360 Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Finance has no effect on the direction of Blackstone i.e., Blackstone and 360 Finance go up and down completely randomly.
Pair Corralation between Blackstone and 360 Finance
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.46 times more return on investment than 360 Finance. However, Blackstone Group is 2.17 times less risky than 360 Finance. It trades about 0.45 of its potential returns per unit of risk. 360 Finance is currently generating about -0.03 per unit of risk. If you would invest 16,997 in Blackstone Group on August 27, 2024 and sell it today you would earn a total of 2,908 from holding Blackstone Group or generate 17.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. 360 Finance
Performance |
| Timeline |
| Blackstone Group |
| 360 Finance |
Blackstone and 360 Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and 360 Finance
The main advantage of trading using opposite Blackstone and 360 Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, 360 Finance 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 360 Finance will offset losses from the drop in 360 Finance's long position.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
| 360 Finance vs. SLM Corp | 360 Finance vs. Orix Corp Ads | 360 Finance vs. FirstCash | 360 Finance vs. Medallion Financial Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |