Correlation Between Blackstone Secured and Locorr Dynamic
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Locorr Dynamic 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 Locorr Dynamic 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 Locorr Dynamic Equity, you can compare the effects of market volatilities on Blackstone Secured and Locorr Dynamic 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 Locorr Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Locorr Dynamic.
Diversification Opportunities for Blackstone Secured and Locorr Dynamic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Locorr is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Locorr Dynamic Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Dynamic Equity 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 Locorr Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Dynamic Equity has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Locorr Dynamic go up and down completely randomly.
Pair Corralation between Blackstone Secured and Locorr Dynamic
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 1.69 times more return on investment than Locorr Dynamic. However, Blackstone Secured is 1.69 times more volatile than Locorr Dynamic Equity. It trades about 0.12 of its potential returns per unit of risk. Locorr Dynamic Equity is currently generating about -0.18 per unit of risk. If you would invest 3,103 in Blackstone Secured Lending on October 9, 2024 and sell it today you would earn a total of 62.00 from holding Blackstone Secured Lending or generate 2.0% 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. Locorr Dynamic Equity
Performance |
| Timeline |
| Blackstone Secured |
| Locorr Dynamic Equity |
Blackstone Secured and Locorr Dynamic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Locorr Dynamic
The main advantage of trading using opposite Blackstone Secured and Locorr Dynamic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Locorr Dynamic 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 Locorr Dynamic will offset losses from the drop in Locorr Dynamic'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 |
| Locorr Dynamic vs. Qs Large Cap | Locorr Dynamic vs. Artisan Mid Cap | Locorr Dynamic vs. Predex Funds | Locorr Dynamic vs. T Rowe Price |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |