Correlation Between Blackstone and UWM Holdings
Can any of the company-specific risk be diversified away by investing in both Blackstone and UWM 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 UWM 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 UWM Holdings Corp, you can compare the effects of market volatilities on Blackstone and UWM 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 UWM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and UWM Holdings.
Diversification Opportunities for Blackstone and UWM Holdings
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and UWM is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and UWM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UWM 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 UWM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UWM Holdings Corp has no effect on the direction of Blackstone i.e., Blackstone and UWM Holdings go up and down completely randomly.
Pair Corralation between Blackstone and UWM Holdings
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.66 times more return on investment than UWM Holdings. However, Blackstone Group is 1.51 times less risky than UWM Holdings. It trades about 0.12 of its potential returns per unit of risk. UWM Holdings Corp is currently generating about 0.04 per unit of risk. If you would invest 8,912 in Blackstone Group on August 28, 2024 and sell it today you would earn a total of 10,400 from holding Blackstone Group or generate 116.7% 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. UWM Holdings Corp
Performance |
| Timeline |
| Blackstone Group |
| UWM Holdings Corp |
Blackstone and UWM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and UWM Holdings
The main advantage of trading using opposite Blackstone and UWM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, UWM 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 UWM Holdings will offset losses from the drop in UWM Holdings' long position.| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
| UWM Holdings vs. Loandepot | UWM Holdings vs. Mr Cooper Group | UWM Holdings vs. PennyMac Finl Svcs | UWM Holdings vs. Walker Dunlop |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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