Correlation Between ClimateRock and Blackstone
Can any of the company-specific risk be diversified away by investing in both ClimateRock and Blackstone 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 ClimateRock and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClimateRock Class A and Blackstone Group, you can compare the effects of market volatilities on ClimateRock and Blackstone 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 ClimateRock with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and Blackstone.
Diversification Opportunities for ClimateRock and Blackstone
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ClimateRock and Blackstone is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and ClimateRock 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 ClimateRock Class A are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of ClimateRock i.e., ClimateRock and Blackstone go up and down completely randomly.
Pair Corralation between ClimateRock and Blackstone
Given the investment horizon of 90 days ClimateRock is expected to generate 8.92 times less return on investment than Blackstone. But when comparing it to its historical volatility, ClimateRock Class A is 5.37 times less risky than Blackstone. It trades about 0.07 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,622 in Blackstone Group on September 2, 2024 and sell it today you would earn a total of 10,487 from holding Blackstone Group or generate 121.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ClimateRock Class A vs. Blackstone Group
Performance |
| Timeline |
| ClimateRock Class |
| Blackstone Group |
ClimateRock and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and Blackstone
The main advantage of trading using opposite ClimateRock and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone's long position.| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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