Correlation Between Logan Ridge and Blackstone
Can any of the company-specific risk be diversified away by investing in both Logan Ridge 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 Logan Ridge and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Blackstone Group, you can compare the effects of market volatilities on Logan Ridge 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 Logan Ridge with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Blackstone.
Diversification Opportunities for Logan Ridge and Blackstone
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Logan and Blackstone is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Logan Ridge 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 Logan Ridge Finance 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 Logan Ridge i.e., Logan Ridge and Blackstone go up and down completely randomly.
Pair Corralation between Logan Ridge and Blackstone
Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 0.78 times more return on investment than Blackstone. However, Logan Ridge Finance is 1.28 times less risky than Blackstone. It trades about 0.13 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.2 per unit of risk. If you would invest 2,392 in Logan Ridge Finance on November 18, 2024 and sell it today you would earn a total of 84.00 from holding Logan Ridge Finance or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. Blackstone Group
Performance |
| Timeline |
| Logan Ridge Finance |
| Blackstone Group |
Logan Ridge and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Blackstone
The main advantage of trading using opposite Logan Ridge and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge 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.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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