Correlation Between Blackstone Secured and Rbc Ultra-short
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Rbc Ultra-short 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 Rbc Ultra-short 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 Rbc Ultra Short Fixed, you can compare the effects of market volatilities on Blackstone Secured and Rbc Ultra-short 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 Rbc Ultra-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Rbc Ultra-short.
Diversification Opportunities for Blackstone Secured and Rbc Ultra-short
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Rbc is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Rbc Ultra Short Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Ultra Short 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 Rbc Ultra-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Ultra Short has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Rbc Ultra-short go up and down completely randomly.
Pair Corralation between Blackstone Secured and Rbc Ultra-short
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 40.19 times more return on investment than Rbc Ultra-short. However, Blackstone Secured is 40.19 times more volatile than Rbc Ultra Short Fixed. It trades about 0.07 of its potential returns per unit of risk. Rbc Ultra Short Fixed is currently generating about 0.23 per unit of risk. If you would invest 3,118 in Blackstone Secured Lending on October 14, 2024 and sell it today you would earn a total of 37.00 from holding Blackstone Secured Lending or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Rbc Ultra Short Fixed
Performance |
| Timeline |
| Blackstone Secured |
| Rbc Ultra Short |
Blackstone Secured and Rbc Ultra-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Rbc Ultra-short
The main advantage of trading using opposite Blackstone Secured and Rbc Ultra-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Rbc Ultra-short 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 Rbc Ultra-short will offset losses from the drop in Rbc Ultra-short'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 |
| Rbc Ultra-short vs. Blackstone Secured Lending | Rbc Ultra-short vs. Financials Ultrasector Profund | Rbc Ultra-short vs. Financial Industries Fund | Rbc Ultra-short 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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