Correlation Between Blackstone Secured and Rational Dividend
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Rational Dividend 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 Rational Dividend 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 Rational Dividend Capture, you can compare the effects of market volatilities on Blackstone Secured and Rational Dividend 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 Rational Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Rational Dividend.
Diversification Opportunities for Blackstone Secured and Rational Dividend
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackstone and Rational is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Rational Dividend Capture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Dividend Capture 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 Rational Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Dividend Capture has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Rational Dividend go up and down completely randomly.
Pair Corralation between Blackstone Secured and Rational Dividend
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 1.39 times more return on investment than Rational Dividend. However, Blackstone Secured is 1.39 times more volatile than Rational Dividend Capture. It trades about 0.1 of its potential returns per unit of risk. Rational Dividend Capture is currently generating about 0.11 per unit of risk. If you would invest 3,083 in Blackstone Secured Lending on October 24, 2024 and sell it today you would earn a total of 167.00 from holding Blackstone Secured Lending or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Rational Dividend Capture
Performance |
| Timeline |
| Blackstone Secured |
| Rational Dividend Capture |
Blackstone Secured and Rational Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Rational Dividend
The main advantage of trading using opposite Blackstone Secured and Rational Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Rational Dividend 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 Rational Dividend will offset losses from the drop in Rational Dividend'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 |
| Rational Dividend vs. First Trust Specialty | Rational Dividend vs. Blackstone Secured Lending | Rational Dividend vs. Hennessy Small Cap | Rational Dividend vs. Blackrock Financial Institutions |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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