Correlation Between Blackstone Secured and Guggenheim High
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Guggenheim High 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 Guggenheim High 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 Guggenheim High Yield, you can compare the effects of market volatilities on Blackstone Secured and Guggenheim High 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 Guggenheim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Guggenheim High.
Diversification Opportunities for Blackstone Secured and Guggenheim High
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Guggenheim is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Guggenheim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim High Yield 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 Guggenheim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim High Yield has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Guggenheim High go up and down completely randomly.
Pair Corralation between Blackstone Secured and Guggenheim High
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 4.06 times more return on investment than Guggenheim High. However, Blackstone Secured is 4.06 times more volatile than Guggenheim High Yield. It trades about 0.43 of its potential returns per unit of risk. Guggenheim High Yield is currently generating about 0.07 per unit of risk. If you would invest 3,165 in Blackstone Secured Lending on November 7, 2024 and sell it today you would earn a total of 195.00 from holding Blackstone Secured Lending or generate 6.16% 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. Guggenheim High Yield
Performance |
| Timeline |
| Blackstone Secured |
| Guggenheim High Yield |
Blackstone Secured and Guggenheim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Guggenheim High
The main advantage of trading using opposite Blackstone Secured and Guggenheim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Guggenheim High 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 Guggenheim High will offset losses from the drop in Guggenheim High'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 |
| Guggenheim High vs. Us Vector Equity | Guggenheim High vs. Transamerica International Equity | Guggenheim High vs. Aqr Long Short Equity | Guggenheim High vs. Ultra Short Fixed Income |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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