Correlation Between Blackstone and Sofina Socit
Can any of the company-specific risk be diversified away by investing in both Blackstone and Sofina Socit 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 Sofina Socit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Sofina Socit Anonyme, you can compare the effects of market volatilities on Blackstone and Sofina Socit 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 Sofina Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Sofina Socit.
Diversification Opportunities for Blackstone and Sofina Socit
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Sofina is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Sofina Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sofina Socit Anonyme 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 Sofina Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sofina Socit Anonyme has no effect on the direction of Blackstone i.e., Blackstone and Sofina Socit go up and down completely randomly.
Pair Corralation between Blackstone and Sofina Socit
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.52 times more return on investment than Sofina Socit. However, Blackstone is 2.52 times more volatile than Sofina Socit Anonyme. It trades about 0.09 of its potential returns per unit of risk. Sofina Socit Anonyme is currently generating about 0.01 per unit of risk. If you would invest 11,530 in Blackstone Group on November 9, 2024 and sell it today you would earn a total of 5,925 from holding Blackstone Group or generate 51.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.29% |
| Values | Daily Returns |
Blackstone Group vs. Sofina Socit Anonyme
Performance |
| Timeline |
| Blackstone Group |
| Sofina Socit Anonyme |
Blackstone and Sofina Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Sofina Socit
The main advantage of trading using opposite Blackstone and Sofina Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Sofina Socit 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 Sofina Socit will offset losses from the drop in Sofina Socit's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Sofina Socit vs. Marygold Companies | Sofina Socit vs. Carbon Streaming Corp | Sofina Socit vs. Arrowmark Financial Corp | Sofina Socit vs. Patria Investments |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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