Correlation Between NYSE Composite and Blackstone Secured
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Blackstone Secured 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 NYSE Composite and Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Blackstone Secured Lending, you can compare the effects of market volatilities on NYSE Composite and Blackstone Secured 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 NYSE Composite with a short position of Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Blackstone Secured.
Diversification Opportunities for NYSE Composite and Blackstone Secured
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Blackstone is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and NYSE Composite 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 NYSE Composite are associated (or correlated) with Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of NYSE Composite i.e., NYSE Composite and Blackstone Secured go up and down completely randomly.
Pair Corralation between NYSE Composite and Blackstone Secured
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.73 times more return on investment than Blackstone Secured. However, NYSE Composite is 1.38 times less risky than Blackstone Secured. It trades about 0.23 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.1 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 29, 2024 and sell it today you would earn a total of 66,015 from holding NYSE Composite or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Blackstone Secured Lending
Performance |
| Timeline |
NYSE Composite and Blackstone Secured Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Blackstone Secured Lending
Pair trading matchups for Blackstone Secured
Pair Trading with NYSE Composite and Blackstone Secured
The main advantage of trading using opposite NYSE Composite and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Blackstone Secured 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 Secured will offset losses from the drop in Blackstone Secured's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Blackstone Secured vs. Carlyle Secured Lending | Blackstone Secured vs. Oaktree Specialty Lending | Blackstone Secured vs. Sixth Street Specialty | Blackstone Secured vs. FS KKR Capital |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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