Correlation Between Blackstone and RF Acquisition
Can any of the company-specific risk be diversified away by investing in both Blackstone and RF Acquisition 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 RF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and RF Acquisition Corp, you can compare the effects of market volatilities on Blackstone and RF Acquisition 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 RF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and RF Acquisition.
Diversification Opportunities for Blackstone and RF Acquisition
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and RFACR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and RF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Acquisition Corp 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 RF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Acquisition Corp has no effect on the direction of Blackstone i.e., Blackstone and RF Acquisition go up and down completely randomly.
Pair Corralation between Blackstone and RF Acquisition
Allowing for the 90-day total investment horizon Blackstone is expected to generate 198.31 times less return on investment than RF Acquisition. But when comparing it to its historical volatility, Blackstone Group is 100.13 times less risky than RF Acquisition. It trades about 0.1 of its potential returns per unit of risk. RF Acquisition Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 7.01 in RF Acquisition Corp on August 24, 2024 and sell it today you would earn a total of 0.99 from holding RF Acquisition Corp or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.59% |
| Values | Daily Returns |
Blackstone Group vs. RF Acquisition Corp
Performance |
| Timeline |
| Blackstone Group |
| RF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Blackstone and RF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and RF Acquisition
The main advantage of trading using opposite Blackstone and RF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, RF Acquisition 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 RF Acquisition will offset losses from the drop in RF Acquisition's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| RF Acquisition vs. Distoken Acquisition | RF Acquisition vs. Voyager Acquisition Corp | RF Acquisition vs. dMY Squared Technology | RF Acquisition vs. YHN Acquisition I |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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