Correlation Between Blackstone Secured and College Retirement
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and College Retirement 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 College Retirement 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 College Retirement Equities, you can compare the effects of market volatilities on Blackstone Secured and College Retirement 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 College Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and College Retirement.
Diversification Opportunities for Blackstone Secured and College Retirement
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackstone and College is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and College Retirement Equities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on College Retirement 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 College Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of College Retirement has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and College Retirement go up and down completely randomly.
Pair Corralation between Blackstone Secured and College Retirement
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 1.27 times more return on investment than College Retirement. However, Blackstone Secured is 1.27 times more volatile than College Retirement Equities. It trades about 0.1 of its potential returns per unit of risk. College Retirement Equities is currently generating about 0.09 per unit of risk. If you would invest 2,015 in Blackstone Secured Lending on October 23, 2024 and sell it today you would earn a total of 1,244 from holding Blackstone Secured Lending or generate 61.74% 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. College Retirement Equities
Performance |
| Timeline |
| Blackstone Secured |
| College Retirement |
Blackstone Secured and College Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and College Retirement
The main advantage of trading using opposite Blackstone Secured and College Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, College Retirement 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 College Retirement will offset losses from the drop in College Retirement'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 |
| College Retirement vs. Prudential Financial Services | College Retirement vs. Vanguard Financials Index | College Retirement vs. Davis Financial Fund | College Retirement vs. Blackstone Secured Lending |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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