Correlation Between Blackstone and SWK Holdings
Can any of the company-specific risk be diversified away by investing in both Blackstone and SWK Holdings 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 SWK Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and SWK Holdings Corp, you can compare the effects of market volatilities on Blackstone and SWK Holdings 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 SWK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and SWK Holdings.
Diversification Opportunities for Blackstone and SWK Holdings
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and SWK is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and SWK Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWK Holdings 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 SWK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWK Holdings Corp has no effect on the direction of Blackstone i.e., Blackstone and SWK Holdings go up and down completely randomly.
Pair Corralation between Blackstone and SWK Holdings
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.49 times more return on investment than SWK Holdings. However, Blackstone is 1.49 times more volatile than SWK Holdings Corp. It trades about 0.27 of its potential returns per unit of risk. SWK Holdings Corp is currently generating about -0.12 per unit of risk. If you would invest 15,674 in Blackstone Group on August 25, 2024 and sell it today you would earn a total of 3,727 from holding Blackstone Group or generate 23.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. SWK Holdings Corp
Performance |
| Timeline |
| Blackstone Group |
| SWK Holdings Corp |
Blackstone and SWK Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and SWK Holdings
The main advantage of trading using opposite Blackstone and SWK Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, SWK Holdings 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 SWK Holdings will offset losses from the drop in SWK Holdings' long position.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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