Correlation Between Blackstone Secured and Deutsche Gnma
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Deutsche Gnma 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 Deutsche Gnma 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 Deutsche Gnma Fund, you can compare the effects of market volatilities on Blackstone Secured and Deutsche Gnma 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 Deutsche Gnma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Deutsche Gnma.
Diversification Opportunities for Blackstone Secured and Deutsche Gnma
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and Deutsche is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Deutsche Gnma Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Gnma 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 Deutsche Gnma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Gnma has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Deutsche Gnma go up and down completely randomly.
Pair Corralation between Blackstone Secured and Deutsche Gnma
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 2.17 times more return on investment than Deutsche Gnma. However, Blackstone Secured is 2.17 times more volatile than Deutsche Gnma Fund. It trades about 0.11 of its potential returns per unit of risk. Deutsche Gnma Fund is currently generating about 0.0 per unit of risk. If you would invest 1,906 in Blackstone Secured Lending on October 12, 2024 and sell it today you would earn a total of 1,249 from holding Blackstone Secured Lending or generate 65.53% 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. Deutsche Gnma Fund
Performance |
| Timeline |
| Blackstone Secured |
| Deutsche Gnma |
Blackstone Secured and Deutsche Gnma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Deutsche Gnma
The main advantage of trading using opposite Blackstone Secured and Deutsche Gnma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Deutsche Gnma 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 Deutsche Gnma will offset losses from the drop in Deutsche Gnma'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 |
| Deutsche Gnma vs. Financial Industries Fund | Deutsche Gnma vs. Vanguard Financials Index | Deutsche Gnma vs. Blackstone Secured Lending | Deutsche Gnma vs. Goldman Sachs Financial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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