Correlation Between Corporate Office and Blackstone
Can any of the company-specific risk be diversified away by investing in both Corporate Office 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 Corporate Office and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Office Properties and Blackstone Group, you can compare the effects of market volatilities on Corporate Office 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 Corporate Office with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Office and Blackstone.
Diversification Opportunities for Corporate Office and Blackstone
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corporate and Blackstone is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Office Properties and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Corporate Office 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 Corporate Office Properties 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 Corporate Office i.e., Corporate Office and Blackstone go up and down completely randomly.
Pair Corralation between Corporate Office and Blackstone
Assuming the 90 days horizon Corporate Office Properties is expected to under-perform the Blackstone. But the stock apears to be less risky and, when comparing its historical volatility, Corporate Office Properties is 1.44 times less risky than Blackstone. The stock trades about -0.23 of its potential returns per unit of risk. The Blackstone Group is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 17,802 in Blackstone Group on October 11, 2024 and sell it today you would lose (1,002) from holding Blackstone Group or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Office Properties vs. Blackstone Group
Performance |
| Timeline |
| Corporate Office Pro |
| Blackstone Group |
Corporate Office and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Office and Blackstone
The main advantage of trading using opposite Corporate Office and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Office 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.| Corporate Office vs. Astral Foods Limited | Corporate Office vs. FUYO GENERAL LEASE | Corporate Office vs. INDOFOOD AGRI RES | Corporate Office vs. Ebro Foods SA |
| Blackstone vs. Corporate Office Properties | Blackstone vs. Addus HomeCare | Blackstone vs. ENVVENO MEDICAL DL 00001 | Blackstone vs. AVITA Medical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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