Correlation Between Blackstone and Scully Royalty
Can any of the company-specific risk be diversified away by investing in both Blackstone and Scully Royalty 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 Scully Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Scully Royalty, you can compare the effects of market volatilities on Blackstone and Scully Royalty 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 Scully Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Scully Royalty.
Diversification Opportunities for Blackstone and Scully Royalty
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Scully is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Scully Royalty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scully Royalty 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 Scully Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scully Royalty has no effect on the direction of Blackstone i.e., Blackstone and Scully Royalty go up and down completely randomly.
Pair Corralation between Blackstone and Scully Royalty
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.67 times more return on investment than Scully Royalty. However, Blackstone Group is 1.5 times less risky than Scully Royalty. It trades about 0.35 of its potential returns per unit of risk. Scully Royalty is currently generating about -0.05 per unit of risk. If you would invest 16,775 in Blackstone Group on September 1, 2024 and sell it today you would earn a total of 2,334 from holding Blackstone Group or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Scully Royalty
Performance |
| Timeline |
| Blackstone Group |
| Scully Royalty |
Blackstone and Scully Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Scully Royalty
The main advantage of trading using opposite Blackstone and Scully Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Scully Royalty 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 Scully Royalty will offset losses from the drop in Scully Royalty's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Scully Royalty vs. PJT Partners | Scully Royalty vs. Piper Sandler Companies | Scully Royalty vs. Evercore Partners | Scully Royalty vs. Moelis Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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