Correlation Between Stone Ridge and Blackrock Alternative
Can any of the company-specific risk be diversified away by investing in both Stone Ridge and Blackrock Alternative 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 Stone Ridge and Blackrock Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stone Ridge Diversified and Blackrock Alternative Capital, you can compare the effects of market volatilities on Stone Ridge and Blackrock Alternative 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 Stone Ridge with a short position of Blackrock Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stone Ridge and Blackrock Alternative.
Diversification Opportunities for Stone Ridge and Blackrock Alternative
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stone and Blackrock is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Stone Ridge Diversified and Blackrock Alternative Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Alternative and Stone Ridge 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 Stone Ridge Diversified are associated (or correlated) with Blackrock Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Alternative has no effect on the direction of Stone Ridge i.e., Stone Ridge and Blackrock Alternative go up and down completely randomly.
Pair Corralation between Stone Ridge and Blackrock Alternative
Assuming the 90 days horizon Stone Ridge Diversified is expected to generate 0.99 times more return on investment than Blackrock Alternative. However, Stone Ridge Diversified is 1.01 times less risky than Blackrock Alternative. It trades about 0.26 of its potential returns per unit of risk. Blackrock Alternative Capital is currently generating about 0.17 per unit of risk. If you would invest 1,061 in Stone Ridge Diversified on September 12, 2024 and sell it today you would earn a total of 81.00 from holding Stone Ridge Diversified or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Stone Ridge Diversified vs. Blackrock Alternative Capital
Performance |
| Timeline |
| Stone Ridge Diversified |
| Blackrock Alternative |
Stone Ridge and Blackrock Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stone Ridge and Blackrock Alternative
The main advantage of trading using opposite Stone Ridge and Blackrock Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stone Ridge position performs unexpectedly, Blackrock Alternative 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 Blackrock Alternative will offset losses from the drop in Blackrock Alternative's long position.| Stone Ridge vs. Blackrock Alternative Capital | Stone Ridge vs. Aqr Style Premia | Stone Ridge vs. Goldman Sachs Absolute | Stone Ridge 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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