Correlation Between Blackstone and SuRo Capital
Can any of the company-specific risk be diversified away by investing in both Blackstone and SuRo 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 SuRo 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 SuRo Capital Corp, you can compare the effects of market volatilities on Blackstone and SuRo 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 SuRo Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and SuRo Capital.
Diversification Opportunities for Blackstone and SuRo Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackstone and SuRo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and SuRo Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuRo 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 SuRo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuRo Capital Corp has no effect on the direction of Blackstone i.e., Blackstone and SuRo Capital go up and down completely randomly.
Pair Corralation between Blackstone and SuRo Capital
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 5.5 times more return on investment than SuRo Capital. However, Blackstone is 5.5 times more volatile than SuRo Capital Corp. It trades about 0.13 of its potential returns per unit of risk. SuRo Capital Corp is currently generating about 0.12 per unit of risk. If you would invest 11,102 in Blackstone Group on September 2, 2024 and sell it today you would earn a total of 8,007 from holding Blackstone Group or generate 72.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. SuRo Capital Corp
Performance |
| Timeline |
| Blackstone Group |
| SuRo Capital Corp |
Blackstone and SuRo Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and SuRo Capital
The main advantage of trading using opposite Blackstone and SuRo Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, SuRo 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 SuRo Capital will offset losses from the drop in SuRo Capital's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| SuRo Capital vs. Diamond Hill Investment | SuRo Capital vs. AllianceBernstein Holding LP | SuRo Capital vs. Associated Capital Group | SuRo Capital vs. Blackstone Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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