Correlation Between Blackstone Gso and HYB

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

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

Diversification Opportunities for Blackstone Gso and HYB

-0.4

Correlation Coefficient

Blackstone Gso  HYB

Very good diversification

The 3 months correlation between Blackstone and HYB is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Strategic and HYB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYB and Blackstone Gso 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 Blackstone Gso Strategic are associated (or correlated) with HYB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYB has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and HYB go up and down completely randomly.

Pair Corralation between Blackstone Gso and HYB

Considering the 90-day investment horizon Blackstone Gso is expected to generate 12.27 times less return on investment than HYB. In addition to that, Blackstone Gso is 1.26 times more volatile than HYB. It trades about 0.01 of its total potential returns per unit of risk. HYB is currently generating about 0.08 per unit of volatility. If you would invest  812.00  in HYB on December 28, 2024 and sell it today you would earn a total of  8.00  from holding HYB or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	61.67%
Values	Daily Returns

Blackstone Gso Strategic  vs.  HYB

Blackstone Gso Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Gso Strategic has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

HYB

Risk-Adjusted Performance

Modest

Over the last 90 days HYB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HYB is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackstone Gso and HYB

The main advantage of trading using opposite Blackstone Gso and HYB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone Gso position performs unexpectedly, HYB 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 HYB will offset losses from the drop in HYB's long position.

The idea behind Blackstone Gso Strategic and HYB 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.