Correlation Between Blackstone and Rithm Capital
Can any of the company-specific risk be diversified away by investing in both Blackstone and Rithm 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 Rithm 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 Rithm Capital Corp, you can compare the effects of market volatilities on Blackstone and Rithm 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 Rithm Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Rithm Capital.
Diversification Opportunities for Blackstone and Rithm Capital
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and Rithm is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Rithm Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Capital 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 Rithm Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Capital Corp has no effect on the direction of Blackstone i.e., Blackstone and Rithm Capital go up and down completely randomly.
Pair Corralation between Blackstone and Rithm Capital
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.44 times more return on investment than Rithm Capital. However, Blackstone is 1.44 times more volatile than Rithm Capital Corp. It trades about 0.1 of its potential returns per unit of risk. Rithm Capital Corp is currently generating about 0.07 per unit of risk. If you would invest 7,718 in Blackstone Group on August 24, 2024 and sell it today you would earn a total of 11,683 from holding Blackstone Group or generate 151.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Rithm Capital Corp
Performance |
| Timeline |
| Blackstone Group |
| Rithm Capital Corp |
Blackstone and Rithm Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Rithm Capital
The main advantage of trading using opposite Blackstone and Rithm Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Rithm 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 Rithm Capital will offset losses from the drop in Rithm Capital's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Rithm Capital vs. Starwood Property Trust | Rithm Capital vs. AGNC Investment Corp | Rithm Capital vs. Blackstone Mortgage Trust | Rithm Capital vs. Ares Commercial Real |
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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