Correlation Between Reliance Industries and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Reliance Industries 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 Reliance Industries and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reliance Industries Ltd and Blackstone Loan Financing, you can compare the effects of market volatilities on Reliance Industries 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 Reliance Industries with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reliance Industries and Blackstone Loan.
Diversification Opportunities for Reliance Industries and Blackstone Loan
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Reliance and Blackstone is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Reliance Industries Ltd 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 Reliance Industries 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 Reliance Industries Ltd 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 Reliance Industries i.e., Reliance Industries and Blackstone Loan go up and down completely randomly.
Pair Corralation between Reliance Industries and Blackstone Loan
Assuming the 90 days trading horizon Reliance Industries is expected to generate 4.29 times less return on investment than Blackstone Loan. In addition to that, Reliance Industries is 1.2 times more volatile than Blackstone Loan Financing. It trades about 0.02 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.1 per unit of volatility. If you would invest 4,753 in Blackstone Loan Financing on September 14, 2024 and sell it today you would earn a total of 1,647 from holding Blackstone Loan Financing or generate 34.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Reliance Industries Ltd vs. Blackstone Loan Financing
Performance |
| Timeline |
| Reliance Industries |
| Blackstone Loan Financing |
Reliance Industries and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reliance Industries and Blackstone Loan
The main advantage of trading using opposite Reliance Industries and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reliance Industries 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.| Reliance Industries vs. Tyson Foods Cl | Reliance Industries vs. National Beverage Corp | Reliance Industries vs. Blackrock World Mining | Reliance Industries vs. Associated British Foods |
| Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Samsung Electronics Co | Blackstone Loan vs. Hyundai Motor | Blackstone Loan vs. Reliance Industries Ltd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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