Correlation Between Blackstone Alternative and Alternative Asset
Can any of the company-specific risk be diversified away by investing in both Blackstone Alternative and Alternative Asset 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 Alternative Asset 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 Alternative Asset Allocation, you can compare the effects of market volatilities on Blackstone Alternative and Alternative Asset 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 Alternative Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Alternative and Alternative Asset.
Diversification Opportunities for Blackstone Alternative and Alternative Asset
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Alternative is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Alternative Multi S and Alternative Asset Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Asset 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 Alternative Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Asset has no effect on the direction of Blackstone Alternative i.e., Blackstone Alternative and Alternative Asset go up and down completely randomly.
Pair Corralation between Blackstone Alternative and Alternative Asset
Assuming the 90 days horizon Blackstone Alternative Multi Strategy is expected to generate 0.81 times more return on investment than Alternative Asset. However, Blackstone Alternative Multi Strategy is 1.23 times less risky than Alternative Asset. It trades about 0.16 of its potential returns per unit of risk. Alternative Asset Allocation is currently generating about 0.12 per unit of risk. If you would invest 931.00 in Blackstone Alternative Multi Strategy on November 27, 2024 and sell it today you would earn a total of 143.00 from holding Blackstone Alternative Multi Strategy or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Alternative Multi S vs. Alternative Asset Allocation
Performance |
| Timeline |
| Blackstone Alternative |
| Alternative Asset |
Blackstone Alternative and Alternative Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Alternative and Alternative Asset
The main advantage of trading using opposite Blackstone Alternative and Alternative Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Alternative position performs unexpectedly, Alternative Asset 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 Alternative Asset will offset losses from the drop in Alternative Asset's long position.| Blackstone Alternative vs. Rbc Impact Bond | Blackstone Alternative vs. Dreyfusstandish Global Fixed | Blackstone Alternative vs. T Rowe Price | Blackstone Alternative vs. Massmutual Premier E |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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