Correlation Between Blackstone and XAI Octagon
Can any of the company-specific risk be diversified away by investing in both Blackstone and XAI Octagon 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 XAI Octagon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and XAI Octagon Floating, you can compare the effects of market volatilities on Blackstone and XAI Octagon 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 XAI Octagon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and XAI Octagon.
Diversification Opportunities for Blackstone and XAI Octagon
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blackstone and XAI is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and XAI Octagon Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAI Octagon Floating 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 XAI Octagon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAI Octagon Floating has no effect on the direction of Blackstone i.e., Blackstone and XAI Octagon go up and down completely randomly.
Pair Corralation between Blackstone and XAI Octagon
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 2.73 times more return on investment than XAI Octagon. However, Blackstone is 2.73 times more volatile than XAI Octagon Floating. It trades about 0.17 of its potential returns per unit of risk. XAI Octagon Floating is currently generating about 0.1 per unit of risk. If you would invest 9,007 in Blackstone Group on August 24, 2024 and sell it today you would earn a total of 10,898 from holding Blackstone Group or generate 120.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. XAI Octagon Floating
Performance |
| Timeline |
| Blackstone Group |
| XAI Octagon Floating |
Blackstone and XAI Octagon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and XAI Octagon
The main advantage of trading using opposite Blackstone and XAI Octagon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, XAI Octagon 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 XAI Octagon will offset losses from the drop in XAI Octagon's long position.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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