Correlation Between FS KKR and Blackstone Secured
Can any of the company-specific risk be diversified away by investing in both FS KKR and Blackstone Secured 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 FS KKR and Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS KKR Capital and Blackstone Secured Lending, you can compare the effects of market volatilities on FS KKR and Blackstone Secured 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 FS KKR with a short position of Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS KKR and Blackstone Secured.
Diversification Opportunities for FS KKR and Blackstone Secured
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FSK and Blackstone is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding FS KKR Capital and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and FS KKR 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 FS KKR Capital are associated (or correlated) with Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of FS KKR i.e., FS KKR and Blackstone Secured go up and down completely randomly.
Pair Corralation between FS KKR and Blackstone Secured
Considering the 90-day investment horizon FS KKR Capital is expected to generate 0.97 times more return on investment than Blackstone Secured. However, FS KKR Capital is 1.03 times less risky than Blackstone Secured. It trades about 0.13 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.08 per unit of risk. If you would invest 1,930 in FS KKR Capital on September 1, 2024 and sell it today you would earn a total of 292.00 from holding FS KKR Capital or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FS KKR Capital vs. Blackstone Secured Lending
Performance |
| Timeline |
| FS KKR Capital |
| Blackstone Secured |
FS KKR and Blackstone Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS KKR and Blackstone Secured
The main advantage of trading using opposite FS KKR and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS KKR position performs unexpectedly, Blackstone Secured 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 Secured will offset losses from the drop in Blackstone Secured's long position.| FS KKR vs. BlackRock TCP Capital | FS KKR vs. Triplepoint Venture Growth | FS KKR vs. Sixth Street Specialty | FS KKR vs. Golub Capital BDC |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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