Correlation Between Sixth Street and Blackstone Secured
Can any of the company-specific risk be diversified away by investing in both Sixth Street and Blackstone Secured 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 Sixth Street and Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixth Street Specialty and Blackstone Secured Lending, you can compare the effects of market volatilities on Sixth Street and Blackstone Secured 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 Sixth Street with a short position of Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixth Street and Blackstone Secured.
Diversification Opportunities for Sixth Street and Blackstone Secured
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sixth and Blackstone is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sixth Street Specialty and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and Sixth Street 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 Sixth Street Specialty are associated (or correlated) with Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of Sixth Street i.e., Sixth Street and Blackstone Secured go up and down completely randomly.
Pair Corralation between Sixth Street and Blackstone Secured
Given the investment horizon of 90 days Sixth Street is expected to generate 1.39 times less return on investment than Blackstone Secured. But when comparing it to its historical volatility, Sixth Street Specialty is 1.02 times less risky than Blackstone Secured. It trades about 0.08 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,963 in Blackstone Secured Lending on October 19, 2024 and sell it today you would earn a total of 1,296 from holding Blackstone Secured Lending or generate 66.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixth Street Specialty vs. Blackstone Secured Lending
Performance |
| Timeline |
| Sixth Street Specialty |
| Blackstone Secured |
Sixth Street and Blackstone Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixth Street and Blackstone Secured
The main advantage of trading using opposite Sixth Street and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixth Street position performs unexpectedly, Blackstone Secured 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 Secured will offset losses from the drop in Blackstone Secured's long position.| Sixth Street vs. New Mountain Finance | Sixth Street vs. Carlyle Secured Lending | Sixth Street vs. BlackRock TCP Capital | Sixth Street vs. Fidus Investment Corp |
| Blackstone Secured vs. Carlyle Secured Lending | Blackstone Secured vs. Oaktree Specialty Lending | Blackstone Secured vs. Sixth Street Specialty | Blackstone Secured vs. FS KKR Capital |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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