Correlation Between Blackstone Secured and International Investors
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and International Investors 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 International Investors 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 International Investors Gold, you can compare the effects of market volatilities on Blackstone Secured and International Investors 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 International Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and International Investors.
Diversification Opportunities for Blackstone Secured and International Investors
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and International is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and International Investors Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Investors 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 International Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Investors has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and International Investors go up and down completely randomly.
Pair Corralation between Blackstone Secured and International Investors
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 0.45 times more return on investment than International Investors. However, Blackstone Secured Lending is 2.21 times less risky than International Investors. It trades about 0.09 of its potential returns per unit of risk. International Investors Gold is currently generating about -0.07 per unit of risk. If you would invest 3,144 in Blackstone Secured Lending on October 11, 2024 and sell it today you would earn a total of 46.00 from holding Blackstone Secured Lending or generate 1.46% 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. International Investors Gold
Performance |
| Timeline |
| Blackstone Secured |
| International Investors |
Blackstone Secured and International Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and International Investors
The main advantage of trading using opposite Blackstone Secured and International Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, International Investors 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 International Investors will offset losses from the drop in International Investors' 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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