Correlation Between RTW Venture and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both RTW Venture 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 RTW Venture and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RTW Venture Fund and Blackstone Loan Financing, you can compare the effects of market volatilities on RTW Venture 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 RTW Venture with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of RTW Venture and Blackstone Loan.
Diversification Opportunities for RTW Venture and Blackstone Loan
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between RTW and Blackstone is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding RTW Venture Fund 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 RTW Venture 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 RTW Venture Fund 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 RTW Venture i.e., RTW Venture and Blackstone Loan go up and down completely randomly.
Pair Corralation between RTW Venture and Blackstone Loan
Assuming the 90 days trading horizon RTW Venture Fund is expected to under-perform the Blackstone Loan. But the stock apears to be less risky and, when comparing its historical volatility, RTW Venture Fund is 2.43 times less risky than Blackstone Loan. The stock trades about -0.15 of its potential returns per unit of risk. The Blackstone Loan Financing is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 5,750 in Blackstone Loan Financing on September 3, 2024 and sell it today you would earn a total of 750.00 from holding Blackstone Loan Financing or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RTW Venture Fund vs. Blackstone Loan Financing
Performance |
| Timeline |
| RTW Venture Fund |
| Blackstone Loan Financing |
RTW Venture and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RTW Venture and Blackstone Loan
The main advantage of trading using opposite RTW Venture and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RTW Venture 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.| RTW Venture vs. Gaztransport et Technigaz | RTW Venture vs. Broadcom | RTW Venture vs. Empire Metals Limited | RTW Venture vs. Cornish Metals |
| Blackstone Loan vs. Catalyst Media Group | Blackstone Loan vs. CATLIN GROUP | Blackstone Loan vs. Magnora ASA | Blackstone Loan vs. RTW Venture Fund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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