Correlation Between Greenhill and Blackstone
Can any of the company-specific risk be diversified away by investing in both Greenhill 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 Greenhill and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenhill Co and Blackstone Group, you can compare the effects of market volatilities on Greenhill 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 Greenhill with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenhill and Blackstone.
Diversification Opportunities for Greenhill and Blackstone
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenhill and Blackstone is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Greenhill Co and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Greenhill 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 Greenhill Co 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 Greenhill i.e., Greenhill and Blackstone go up and down completely randomly.
Pair Corralation between Greenhill and Blackstone
If you would invest 16,606 in Blackstone Group on August 24, 2024 and sell it today you would earn a total of 2,795 from holding Blackstone Group or generate 16.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Greenhill Co vs. Blackstone Group
Performance |
| Timeline |
| Greenhill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackstone Group |
Greenhill and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenhill and Blackstone
The main advantage of trading using opposite Greenhill and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenhill 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.| Greenhill vs. Magic Empire Global | Greenhill vs. Applied Blockchain | Greenhill vs. Zhong Yang Financial | Greenhill vs. Netcapital |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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