Correlation Between Unilever PLC and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Unilever PLC 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 Unilever PLC and Blackstone Loan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unilever PLC and Blackstone Loan Financing, you can compare the effects of market volatilities on Unilever PLC 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 Unilever PLC with a short position of Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unilever PLC and Blackstone Loan.
Diversification Opportunities for Unilever PLC and Blackstone Loan
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unilever and Blackstone is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Unilever PLC 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 Unilever PLC 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 Unilever PLC 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 Unilever PLC i.e., Unilever PLC and Blackstone Loan go up and down completely randomly.
Pair Corralation between Unilever PLC and Blackstone Loan
Assuming the 90 days trading horizon Unilever PLC is expected to generate 0.84 times more return on investment than Blackstone Loan. However, Unilever PLC is 1.2 times less risky than Blackstone Loan. It trades about 0.05 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.03 per unit of risk. If you would invest 382,977 in Unilever PLC on September 3, 2024 and sell it today you would earn a total of 87,123 from holding Unilever PLC or generate 22.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unilever PLC vs. Blackstone Loan Financing
Performance |
| Timeline |
| Unilever PLC |
| Blackstone Loan Financing |
Unilever PLC and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unilever PLC and Blackstone Loan
The main advantage of trading using opposite Unilever PLC and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unilever PLC 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.| Unilever PLC vs. Blackstone Loan Financing | Unilever PLC vs. Seche Environnement SA | Unilever PLC vs. JLEN Environmental Assets | Unilever PLC vs. Ebro Foods |
| Blackstone Loan vs. Catalyst Media Group | Blackstone Loan vs. CATLIN GROUP | Blackstone Loan vs. Tamburi Investment Partners | Blackstone Loan vs. Magnora ASA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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