Correlation Between Blackstone Alternative and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Blackstone Alternative and Goldman Sachs 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 Alternative and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Alternative Multi Strategy and Goldman Sachs Absolute, you can compare the effects of market volatilities on Blackstone Alternative and Goldman Sachs 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 Alternative with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Alternative and Goldman Sachs.
Diversification Opportunities for Blackstone Alternative and Goldman Sachs
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Goldman is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Alternative Multi S and Goldman Sachs Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Absolute and Blackstone Alternative 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 Alternative Multi Strategy are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Absolute has no effect on the direction of Blackstone Alternative i.e., Blackstone Alternative and Goldman Sachs go up and down completely randomly.
Pair Corralation between Blackstone Alternative and Goldman Sachs
Assuming the 90 days horizon Blackstone Alternative is expected to generate 1.11 times less return on investment than Goldman Sachs. But when comparing it to its historical volatility, Blackstone Alternative Multi Strategy is 2.02 times less risky than Goldman Sachs. It trades about 0.17 of its potential returns per unit of risk. Goldman Sachs Absolute is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 826.00 in Goldman Sachs Absolute on August 28, 2024 and sell it today you would earn a total of 140.00 from holding Goldman Sachs Absolute or generate 16.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Blackstone Alternative Multi S vs. Goldman Sachs Absolute
Performance |
| Timeline |
| Blackstone Alternative |
| Goldman Sachs Absolute |
Blackstone Alternative and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Alternative and Goldman Sachs
The main advantage of trading using opposite Blackstone Alternative and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Alternative position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Blackstone Alternative vs. Sp 500 Equal | Blackstone Alternative vs. Fidelity Contrafund | Blackstone Alternative vs. Lord Abbett Affiliated | Blackstone Alternative vs. Greenspring Fund Retail |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |