Correlation Between Blackstone Secured and Large Cap
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Large Cap 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 Large Cap 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 Large Cap Value, you can compare the effects of market volatilities on Blackstone Secured and Large Cap 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 Large Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Large Cap.
Diversification Opportunities for Blackstone Secured and Large Cap
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Blackstone and Large is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Large Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Cap Value 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 Large Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Cap Value has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Large Cap go up and down completely randomly.
Pair Corralation between Blackstone Secured and Large Cap
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 0.97 times more return on investment than Large Cap. However, Blackstone Secured Lending is 1.03 times less risky than Large Cap. It trades about 0.43 of its potential returns per unit of risk. Large Cap Value is currently generating about 0.14 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Secured Lending vs. Large Cap Value
Performance |
| Timeline |
| Blackstone Secured |
| Large Cap Value |
Blackstone Secured and Large Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Large Cap
The main advantage of trading using opposite Blackstone Secured and Large Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Large Cap 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 Large Cap will offset losses from the drop in Large Cap'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 |
| Large Cap vs. Wabmsx | Large Cap vs. Small Pany Growth | Large Cap vs. Fznopx | Large Cap vs. Arrow Managed Futures |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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