Correlation Between Blackstone and Brookfield Real
Can any of the company-specific risk be diversified away by investing in both Blackstone and Brookfield Real 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 Brookfield Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Brookfield Real Assets, you can compare the effects of market volatilities on Blackstone and Brookfield Real 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 Brookfield Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Brookfield Real.
Diversification Opportunities for Blackstone and Brookfield Real
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackstone and Brookfield is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Brookfield Real Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Real Assets 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 Brookfield Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Real Assets has no effect on the direction of Blackstone i.e., Blackstone and Brookfield Real go up and down completely randomly.
Pair Corralation between Blackstone and Brookfield Real
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.71 times more return on investment than Brookfield Real. However, Blackstone is 2.71 times more volatile than Brookfield Real Assets. It trades about 0.47 of its potential returns per unit of risk. Brookfield Real Assets is currently generating about 0.08 per unit of risk. If you would invest 16,606 in Blackstone Group on August 24, 2024 and sell it today you would earn a total of 3,299 from holding Blackstone Group or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Brookfield Real Assets
Performance |
| Timeline |
| Blackstone Group |
| Brookfield Real Assets |
Blackstone and Brookfield Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Brookfield Real
The main advantage of trading using opposite Blackstone and Brookfield Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Brookfield Real 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 Brookfield Real will offset losses from the drop in Brookfield Real's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Brookfield Real vs. MFS Investment Grade | Brookfield Real vs. Eaton Vance National | Brookfield Real vs. Blackrock Muniyield Quality | Brookfield Real vs. Munivest Fund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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