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 High and Blackstone Gso Senior, 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
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Blackstone is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding First Trust High and Blackstone Gso Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Senior 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 High 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 Senior 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 High is expected to generate 1.18 times more return on investment than Blackstone Gso. However, First Trust is 1.18 times more volatile than Blackstone Gso Senior. It trades about 0.2 of its potential returns per unit of risk. Blackstone Gso Senior is currently generating about 0.13 per unit of risk. If you would invest 1,169 in First Trust High on August 28, 2024 and sell it today you would earn a total of 53.00 from holding First Trust High or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.57% |
| Values | Daily Returns |
First Trust High vs. Blackstone Gso Senior
Performance |
| Timeline |
| First Trust High |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackstone Gso Senior |
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. Franklin Templeton Limited | First Trust vs. Blackrock Floating Rate | First Trust vs. Cohen Steers Limited | First Trust vs. Blackstone Gso Long |
| Blackstone Gso vs. Blackstone Gso Long | Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackstone Gso Strategic |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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