Correlation Between Rand Capital and Blackstone
Can any of the company-specific risk be diversified away by investing in both Rand Capital 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 Rand Capital and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rand Capital Corp and Blackstone Group, you can compare the effects of market volatilities on Rand Capital 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 Rand Capital with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rand Capital and Blackstone.
Diversification Opportunities for Rand Capital and Blackstone
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rand and Blackstone is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Rand Capital Corp and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Rand Capital 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 Rand Capital Corp 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 Rand Capital i.e., Rand Capital and Blackstone go up and down completely randomly.
Pair Corralation between Rand Capital and Blackstone
Given the investment horizon of 90 days Rand Capital is expected to generate 1.55 times less return on investment than Blackstone. In addition to that, Rand Capital is 1.22 times more volatile than Blackstone Group. It trades about 0.07 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.14 per unit of volatility. 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 | 97.19% |
| Values | Daily Returns |
Rand Capital Corp vs. Blackstone Group
Performance |
| Timeline |
| Rand Capital Corp |
| Blackstone Group |
Rand Capital and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rand Capital and Blackstone
The main advantage of trading using opposite Rand Capital and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rand Capital 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.| Rand Capital vs. Blackstone Gso Long | Rand Capital vs. First Trust Senior | Rand Capital vs. Eaton Vance Senior | Rand Capital vs. Princeton Capital |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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