Correlation Between Blackstone Secured and Delaware Diversified
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Delaware Diversified 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 Delaware Diversified 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 Delaware Diversified Income, you can compare the effects of market volatilities on Blackstone Secured and Delaware Diversified 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 Delaware Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Delaware Diversified.
Diversification Opportunities for Blackstone Secured and Delaware Diversified
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackstone and Delaware is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Delaware Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Diversified 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 Delaware Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Diversified has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Delaware Diversified go up and down completely randomly.
Pair Corralation between Blackstone Secured and Delaware Diversified
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 2.56 times more return on investment than Delaware Diversified. However, Blackstone Secured is 2.56 times more volatile than Delaware Diversified Income. It trades about 0.05 of its potential returns per unit of risk. Delaware Diversified Income is currently generating about 0.09 per unit of risk. If you would invest 3,224 in Blackstone Secured Lending on October 25, 2024 and sell it today you would earn a total of 24.00 from holding Blackstone Secured Lending or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Delaware Diversified Income
Performance |
| Timeline |
| Blackstone Secured |
| Delaware Diversified |
Blackstone Secured and Delaware Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Delaware Diversified
The main advantage of trading using opposite Blackstone Secured and Delaware Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Delaware Diversified 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 Delaware Diversified will offset losses from the drop in Delaware Diversified'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 |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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