Correlation Between Blackstone Secured and Center Coast
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Center Coast 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 Center Coast 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 Center St Mlp, you can compare the effects of market volatilities on Blackstone Secured and Center Coast 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 Center Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Center Coast.
Diversification Opportunities for Blackstone Secured and Center Coast
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Center is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Center St Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Center St Mlp 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 Center Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Center St Mlp has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Center Coast go up and down completely randomly.
Pair Corralation between Blackstone Secured and Center Coast
Given the investment horizon of 90 days Blackstone Secured is expected to generate 1.45 times less return on investment than Center Coast. But when comparing it to its historical volatility, Blackstone Secured Lending is 1.14 times less risky than Center Coast. It trades about 0.13 of its potential returns per unit of risk. Center St Mlp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Center St Mlp on November 3, 2024 and sell it today you would earn a total of 173.00 from holding Center St Mlp or generate 47.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Center St Mlp
Performance |
| Timeline |
| Blackstone Secured |
| Center St Mlp |
Blackstone Secured and Center Coast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Center Coast
The main advantage of trading using opposite Blackstone Secured and Center Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Center Coast 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 Center Coast will offset losses from the drop in Center Coast'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 |
| Center Coast vs. Morningstar Global Income | Center Coast vs. Us Global Investors | Center Coast vs. Mirova Global Green | Center Coast vs. Ab Global Bond |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |