Correlation Between SLR Investment and Blackstone
Can any of the company-specific risk be diversified away by investing in both SLR Investment 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 SLR Investment and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and Blackstone Group, you can compare the effects of market volatilities on SLR Investment 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 SLR Investment with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Blackstone.
Diversification Opportunities for SLR Investment and Blackstone
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SLR and Blackstone is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and SLR Investment 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 SLR Investment Corp 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 SLR Investment i.e., SLR Investment and Blackstone go up and down completely randomly.
Pair Corralation between SLR Investment and Blackstone
Assuming the 90 days horizon SLR Investment is expected to generate 3.31 times less return on investment than Blackstone. But when comparing it to its historical volatility, SLR Investment Corp is 1.68 times less risky than Blackstone. It trades about 0.09 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 11,131 in Blackstone Group on September 3, 2024 and sell it today you would earn a total of 6,989 from holding Blackstone Group or generate 62.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Blackstone Group
Performance |
| Timeline |
| SLR Investment Corp |
| Blackstone Group |
SLR Investment and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Blackstone
The main advantage of trading using opposite SLR Investment and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment 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.| SLR Investment vs. Blackstone Group | SLR Investment vs. BlackRock | SLR Investment vs. The Bank of | SLR Investment vs. Ameriprise Financial |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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