Correlation Between First Trust and Blackstone Gso
Can any of the company-specific risk be diversified away by investing in both First Trust and Blackstone Gso 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 First Trust and Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Mortgage and Blackstone Gso Strategic, you can compare the effects of market volatilities on First Trust and Blackstone Gso 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 First Trust with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Blackstone Gso.
Diversification Opportunities for First Trust and Blackstone Gso
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Blackstone is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Mortgage and Blackstone Gso Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Strategic and First Trust 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 First Trust Mortgage are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Strategic has no effect on the direction of First Trust i.e., First Trust and Blackstone Gso go up and down completely randomly.
Pair Corralation between First Trust and Blackstone Gso
Considering the 90-day investment horizon First Trust is expected to generate 2.11 times less return on investment than Blackstone Gso. In addition to that, First Trust is 1.45 times more volatile than Blackstone Gso Strategic. It trades about 0.04 of its total potential returns per unit of risk. Blackstone Gso Strategic is currently generating about 0.12 per unit of volatility. If you would invest 885.00 in Blackstone Gso Strategic on August 24, 2024 and sell it today you would earn a total of 361.00 from holding Blackstone Gso Strategic or generate 40.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Trust Mortgage vs. Blackstone Gso Strategic
Performance |
| Timeline |
| First Trust Mortgage |
| Blackstone Gso Strategic |
First Trust and Blackstone Gso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Blackstone Gso
The main advantage of trading using opposite First Trust and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Blackstone Gso 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 Gso will offset losses from the drop in Blackstone Gso's long position.| First Trust vs. First Trust Senior | First Trust vs. Western Asset Global | First Trust vs. Western Asset Global | First Trust vs. BlackRock Floating Rate |
| Blackstone Gso vs. MFS Investment Grade | Blackstone Gso vs. Eaton Vance National | Blackstone Gso vs. Blackrock Muniyield Quality | Blackstone Gso vs. Munivest Fund |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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