Correlation Between Blackstone Secured and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Ab Municipal 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 Secured and Ab Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Secured Lending and Ab Municipal Bond, you can compare the effects of market volatilities on Blackstone Secured and Ab Municipal 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 Secured with a short position of Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Ab Municipal.
Diversification Opportunities for Blackstone Secured and Ab Municipal
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and AUNTX is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Bond and Blackstone Secured 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 Secured Lending are associated (or correlated) with Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Ab Municipal go up and down completely randomly.
Pair Corralation between Blackstone Secured and Ab Municipal
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 3.76 times more return on investment than Ab Municipal. However, Blackstone Secured is 3.76 times more volatile than Ab Municipal Bond. It trades about 0.09 of its potential returns per unit of risk. Ab Municipal Bond is currently generating about -0.21 per unit of risk. If you would invest 3,144 in Blackstone Secured Lending on October 11, 2024 and sell it today you would earn a total of 46.00 from holding Blackstone Secured Lending or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Ab Municipal Bond
Performance |
| Timeline |
| Blackstone Secured |
| Ab Municipal Bond |
Blackstone Secured and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Ab Municipal
The main advantage of trading using opposite Blackstone Secured and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.| Blackstone Secured vs. Carlyle Secured Lending | Blackstone Secured vs. Oaktree Specialty Lending | Blackstone Secured vs. Sixth Street Specialty | Blackstone Secured vs. FS KKR Capital |
| Ab Municipal vs. Vanguard Financials Index | Ab Municipal vs. Blackstone Secured Lending | Ab Municipal vs. Angel Oak Financial | Ab Municipal vs. Putnam Global Financials |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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