Correlation Between Oaktree Specialty and Blackstone Secured
Can any of the company-specific risk be diversified away by investing in both Oaktree Specialty 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 Oaktree Specialty and Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oaktree Specialty Lending and Blackstone Secured Lending, you can compare the effects of market volatilities on Oaktree Specialty 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 Oaktree Specialty with a short position of Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oaktree Specialty and Blackstone Secured.
Diversification Opportunities for Oaktree Specialty and Blackstone Secured
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oaktree and Blackstone is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Oaktree Specialty Lending and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and Oaktree Specialty 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 Oaktree Specialty Lending 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 Oaktree Specialty i.e., Oaktree Specialty and Blackstone Secured go up and down completely randomly.
Pair Corralation between Oaktree Specialty and Blackstone Secured
Given the investment horizon of 90 days Oaktree Specialty Lending is expected to under-perform the Blackstone Secured. In addition to that, Oaktree Specialty is 1.26 times more volatile than Blackstone Secured Lending. It trades about -0.08 of its total potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.08 per unit of volatility. If you would invest 2,995 in Blackstone Secured Lending on September 1, 2024 and sell it today you would earn a total of 263.00 from holding Blackstone Secured Lending or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oaktree Specialty Lending vs. Blackstone Secured Lending
Performance |
| Timeline |
| Oaktree Specialty Lending |
| Blackstone Secured |
Oaktree Specialty and Blackstone Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oaktree Specialty and Blackstone Secured
The main advantage of trading using opposite Oaktree Specialty and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oaktree Specialty 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.| Oaktree Specialty vs. Barings BDC | Oaktree Specialty vs. OneMain Holdings | Oaktree Specialty vs. Runway Growth Finance | Oaktree Specialty vs. Ally Financial |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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