Correlation Between GM and Blackstone Mortgage
Can any of the company-specific risk be diversified away by investing in both GM and Blackstone Mortgage 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 GM and Blackstone Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Blackstone Mortgage Trust, you can compare the effects of market volatilities on GM and Blackstone Mortgage 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 GM with a short position of Blackstone Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Blackstone Mortgage.
Diversification Opportunities for GM and Blackstone Mortgage
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between GM and Blackstone is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Blackstone Mortgage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Mortgage Trust and GM 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 General Motors are associated (or correlated) with Blackstone Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Mortgage Trust has no effect on the direction of GM i.e., GM and Blackstone Mortgage go up and down completely randomly.
Pair Corralation between GM and Blackstone Mortgage
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.35 times more return on investment than Blackstone Mortgage. However, GM is 1.35 times more volatile than Blackstone Mortgage Trust. It trades about 0.32 of its potential returns per unit of risk. Blackstone Mortgage Trust is currently generating about 0.07 per unit of risk. If you would invest 5,273 in General Motors on August 28, 2024 and sell it today you would earn a total of 747.00 from holding General Motors or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Blackstone Mortgage Trust
Performance |
| Timeline |
| General Motors |
| Blackstone Mortgage Trust |
GM and Blackstone Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Blackstone Mortgage
The main advantage of trading using opposite GM and Blackstone Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Blackstone Mortgage 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 Mortgage will offset losses from the drop in Blackstone Mortgage's long position.The idea behind General Motors and Blackstone Mortgage Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Blackstone Mortgage vs. Starwood Property Trust | Blackstone Mortgage vs. Rithm Capital Corp | Blackstone Mortgage vs. AGNC Investment Corp | Blackstone Mortgage vs. Ares Commercial Real |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets |