Correlation Between Value Fund and Blackstone Secured

Can any of the company-specific risk be diversified away by investing in both Value Fund 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 Value Fund and Blackstone Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Value Fund R6 and Blackstone Secured Lending, you can compare the effects of market volatilities on Value Fund 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 Value Fund with a short position of Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Fund and Blackstone Secured.

Diversification Opportunities for Value Fund and Blackstone Secured

0.09

Correlation Coefficient

Value Fund  Blackstone Secured

Significant diversification

The 3 months correlation between Value and Blackstone is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Value Fund R6 and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and Value Fund 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 Value Fund R6 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 Value Fund i.e., Value Fund and Blackstone Secured go up and down completely randomly.

Pair Corralation between Value Fund and Blackstone Secured

Assuming the 90 days horizon Value Fund is expected to generate 1.04 times less return on investment than Blackstone Secured. But when comparing it to its historical volatility, Value Fund R6 is 1.61 times less risky than Blackstone Secured. It trades about 0.09 of its potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,173  in Blackstone Secured Lending on December 21, 2024 and sell it today you would earn a total of  121.00  from holding Blackstone Secured Lending or generate 3.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Value Fund R6  vs.  Blackstone Secured Lending

Value Fund R6

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Value Fund R6 are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Value Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Blackstone Secured

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Secured Lending are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Blackstone Secured is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Value Fund and Blackstone Secured

The main advantage of trading using opposite Value Fund and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Fund 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.

The idea behind Value Fund R6 and Blackstone Secured Lending pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.