Correlation Between SCOTT TECHNOLOGY and Blackstone
Can any of the company-specific risk be diversified away by investing in both SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOTT TECHNOLOGY and Blackstone Group, you can compare the effects of market volatilities on SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOTT TECHNOLOGY and Blackstone.
Diversification Opportunities for SCOTT TECHNOLOGY and Blackstone
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCOTT and Blackstone is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SCOTT TECHNOLOGY and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY 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 SCOTT TECHNOLOGY i.e., SCOTT TECHNOLOGY and Blackstone go up and down completely randomly.
Pair Corralation between SCOTT TECHNOLOGY and Blackstone
Assuming the 90 days trading horizon SCOTT TECHNOLOGY is expected to generate 4.06 times less return on investment than Blackstone. In addition to that, SCOTT TECHNOLOGY is 1.61 times more volatile than Blackstone Group. It trades about 0.03 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.22 per unit of volatility. If you would invest 10,973 in Blackstone Group on August 29, 2024 and sell it today you would earn a total of 7,307 from holding Blackstone Group or generate 66.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOTT TECHNOLOGY vs. Blackstone Group
Performance |
| Timeline |
| SCOTT TECHNOLOGY |
| Blackstone Group |
SCOTT TECHNOLOGY and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOTT TECHNOLOGY and Blackstone
The main advantage of trading using opposite SCOTT TECHNOLOGY and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOTT TECHNOLOGY 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.| SCOTT TECHNOLOGY vs. Apple Inc | SCOTT TECHNOLOGY vs. Apple Inc | SCOTT TECHNOLOGY vs. Superior Plus Corp | SCOTT TECHNOLOGY vs. SIVERS SEMICONDUCTORS AB |
| Blackstone vs. JAPAN TOBACCO UNSPADR12 | Blackstone vs. BRIT AMER TOBACCO | Blackstone vs. THAI BEVERAGE | Blackstone vs. LIFEWAY FOODS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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