Correlation Between Blackstone and Invesco Trust
Can any of the company-specific risk be diversified away by investing in both Blackstone and Invesco Trust 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 Invesco Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Invesco Trust For, you can compare the effects of market volatilities on Blackstone and Invesco Trust 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 Invesco Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Invesco Trust.
Diversification Opportunities for Blackstone and Invesco Trust
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Invesco is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Invesco Trust For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Trust For 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 Invesco Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Trust For has no effect on the direction of Blackstone i.e., Blackstone and Invesco Trust go up and down completely randomly.
Pair Corralation between Blackstone and Invesco Trust
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 3.0 times more return on investment than Invesco Trust. However, Blackstone is 3.0 times more volatile than Invesco Trust For. It trades about 0.11 of its potential returns per unit of risk. Invesco Trust For is currently generating about 0.04 per unit of risk. If you would invest 7,413 in Blackstone Group on August 27, 2024 and sell it today you would earn a total of 12,492 from holding Blackstone Group or generate 168.51% 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. Invesco Trust For
Performance |
| Timeline |
| Blackstone Group |
| Invesco Trust For |
Blackstone and Invesco Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Invesco Trust
The main advantage of trading using opposite Blackstone and Invesco Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Invesco Trust 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 Invesco Trust will offset losses from the drop in Invesco Trust's 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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