Correlation Between Blackstone Secured and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Allianzgi Convertible 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 Allianzgi Convertible 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 Allianzgi Convertible Income, you can compare the effects of market volatilities on Blackstone Secured and Allianzgi Convertible 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 Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Allianzgi Convertible.
Diversification Opportunities for Blackstone Secured and Allianzgi Convertible
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackstone and AllianzGI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible 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 Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Blackstone Secured and Allianzgi Convertible
Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 1.34 times more return on investment than Allianzgi Convertible. However, Blackstone Secured is 1.34 times more volatile than Allianzgi Convertible Income. It trades about 0.11 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.05 per unit of risk. If you would invest 1,986 in Blackstone Secured Lending on October 27, 2024 and sell it today you would earn a total of 1,284 from holding Blackstone Secured Lending or generate 64.65% 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. Allianzgi Convertible Income
Performance |
| Timeline |
| Blackstone Secured |
| Allianzgi Convertible |
Blackstone Secured and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone Secured and Allianzgi Convertible
The main advantage of trading using opposite Blackstone Secured and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Secured position performs unexpectedly, Allianzgi Convertible 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible'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 |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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