Correlation Between Blackstone and WinVest Acquisition
Can any of the company-specific risk be diversified away by investing in both Blackstone and WinVest Acquisition 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 WinVest Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and WinVest Acquisition Corp, you can compare the effects of market volatilities on Blackstone and WinVest Acquisition 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 WinVest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and WinVest Acquisition.
Diversification Opportunities for Blackstone and WinVest Acquisition
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and WinVest is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and WinVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WinVest Acquisition 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 WinVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WinVest Acquisition Corp has no effect on the direction of Blackstone i.e., Blackstone and WinVest Acquisition go up and down completely randomly.
Pair Corralation between Blackstone and WinVest Acquisition
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 20.01 times more return on investment than WinVest Acquisition. However, Blackstone is 20.01 times more volatile than WinVest Acquisition Corp. It trades about 0.24 of its potential returns per unit of risk. WinVest Acquisition Corp is currently generating about 0.21 per unit of risk. If you would invest 17,154 in Blackstone Group on August 31, 2024 and sell it today you would earn a total of 1,748 from holding Blackstone Group or generate 10.19% 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. WinVest Acquisition Corp
Performance |
| Timeline |
| Blackstone Group |
| WinVest Acquisition Corp |
Blackstone and WinVest Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and WinVest Acquisition
The main advantage of trading using opposite Blackstone and WinVest Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, WinVest Acquisition 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 WinVest Acquisition will offset losses from the drop in WinVest Acquisition's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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