Correlation Between Henderson High and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Henderson High and Blackstone Loan 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 Henderson High and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson High Income and Blackstone Loan Financing, you can compare the effects of market volatilities on Henderson High and Blackstone Loan 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 Henderson High with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson High and Blackstone Loan.
Diversification Opportunities for Henderson High and Blackstone Loan
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Henderson and Blackstone is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Henderson High Income and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing and Henderson High 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 Henderson High Income are associated (or correlated) with Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Henderson High i.e., Henderson High and Blackstone Loan go up and down completely randomly.
Pair Corralation between Henderson High and Blackstone Loan
Assuming the 90 days trading horizon Henderson High is expected to generate 1.9 times less return on investment than Blackstone Loan. But when comparing it to its historical volatility, Henderson High Income is 1.49 times less risky than Blackstone Loan. It trades about 0.08 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,546 in Blackstone Loan Financing on September 13, 2024 and sell it today you would earn a total of 854.00 from holding Blackstone Loan Financing or generate 15.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Henderson High Income vs. Blackstone Loan Financing
Performance |
| Timeline |
| Henderson High Income |
| Blackstone Loan Financing |
Henderson High and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson High and Blackstone Loan
The main advantage of trading using opposite Henderson High and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson High position performs unexpectedly, Blackstone Loan 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 Loan will offset losses from the drop in Blackstone Loan's long position.| Henderson High vs. Trainline Plc | Henderson High vs. JB Hunt Transport | Henderson High vs. Systemair AB | Henderson High vs. Sealed Air Corp |
| Blackstone Loan vs. Ion Beam Applications | Blackstone Loan vs. Extra Space Storage | Blackstone Loan vs. Cars Inc | Blackstone Loan vs. European Metals Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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