Correlation Between Blackstone Secured and Moderate Balanced
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Moderate Balanced 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 Moderate Balanced 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 Moderate Balanced Allocation, you can compare the effects of market volatilities on Blackstone Secured and Moderate Balanced 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 Moderate Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Moderate Balanced.
Diversification Opportunities for Blackstone Secured and Moderate Balanced
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackstone and Moderate is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Moderate Balanced Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moderate Balanced 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 Moderate Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moderate Balanced has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Moderate Balanced go up and down completely randomly.
Pair Corralation between Blackstone Secured and Moderate Balanced
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 1.9 times more return on investment than Moderate Balanced. However, Blackstone Secured is 1.9 times more volatile than Moderate Balanced Allocation. It trades about 0.11 of its potential returns per unit of risk. Moderate Balanced Allocation is currently generating about 0.06 per unit of risk. If you would invest 2,002 in Blackstone Secured Lending on November 6, 2024 and sell it today you would earn a total of 1,370 from holding Blackstone Secured Lending or generate 68.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Moderate Balanced Allocation
Performance |
| Timeline |
| Blackstone Secured |
| Moderate Balanced |
Blackstone Secured and Moderate Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Moderate Balanced
The main advantage of trading using opposite Blackstone Secured and Moderate Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Moderate Balanced 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 Moderate Balanced will offset losses from the drop in Moderate Balanced'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 |
| Moderate Balanced vs. Redwood Real Estate | Moderate Balanced vs. Nexpoint Real Estate | Moderate Balanced vs. Amg Managers Centersquare | Moderate Balanced vs. Deutsche Real Estate |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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