Correlation Between US Global and Blackstone
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Blackstone Group, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Blackstone.
Diversification Opportunities for US Global and Blackstone
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GROW and Blackstone is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and US Global 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 US Global Investors 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 US Global i.e., US Global and Blackstone go up and down completely randomly.
Pair Corralation between US Global and Blackstone
Given the investment horizon of 90 days US Global Investors is expected to under-perform the Blackstone. But the stock apears to be less risky and, when comparing its historical volatility, US Global Investors is 1.39 times less risky than Blackstone. The stock trades about -0.04 of its potential returns per unit of risk. The Blackstone Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 10,956 in Blackstone Group on August 26, 2024 and sell it today you would earn a total of 8,949 from holding Blackstone Group or generate 81.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Blackstone Group
Performance |
| Timeline |
| US Global Investors |
| Blackstone Group |
US Global and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Blackstone
The main advantage of trading using opposite US Global and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
| Blackstone vs. PowerUp Acquisition Corp | Blackstone vs. Aurora Innovation | Blackstone vs. HUMANA INC | Blackstone vs. Aquagold International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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