Correlation Between Blackstone Secured and Bright Rock
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Bright Rock 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 Bright Rock 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 Bright Rock Quality, you can compare the effects of market volatilities on Blackstone Secured and Bright Rock 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 Bright Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Bright Rock.
Diversification Opportunities for Blackstone Secured and Bright Rock
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and Bright is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Bright Rock Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Rock Quality 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 Bright Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Rock Quality has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Bright Rock go up and down completely randomly.
Pair Corralation between Blackstone Secured and Bright Rock
Given the investment horizon of 90 days Blackstone Secured is expected to generate 1.31 times less return on investment than Bright Rock. In addition to that, Blackstone Secured is 1.43 times more volatile than Bright Rock Quality. It trades about 0.19 of its total potential returns per unit of risk. Bright Rock Quality is currently generating about 0.35 per unit of volatility. If you would invest 2,203 in Bright Rock Quality on November 3, 2024 and sell it today you would earn a total of 97.00 from holding Bright Rock Quality or generate 4.4% 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. Bright Rock Quality
Performance |
| Timeline |
| Blackstone Secured |
| Bright Rock Quality |
Blackstone Secured and Bright Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Bright Rock
The main advantage of trading using opposite Blackstone Secured and Bright Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Bright Rock 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 Bright Rock will offset losses from the drop in Bright Rock'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 |
| Bright Rock vs. Dodge Cox Stock | Bright Rock vs. Guidemark Large Cap | Bright Rock vs. Qs Large Cap | Bright Rock vs. Oakmark Fund Investor |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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