Correlation Between Blackstone Loan and Seche Environnement

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

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

Diversification Opportunities for Blackstone Loan and Seche Environnement

-0.79

Correlation Coefficient

Blackstone Loan  Seche Environnement

Pay attention - limited upside

The 3 months correlation between Blackstone and Seche is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Seche Environnement SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seche Environnement and Blackstone Loan 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 Loan Financing are associated (or correlated) with Seche Environnement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seche Environnement has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Seche Environnement go up and down completely randomly.

Pair Corralation between Blackstone Loan and Seche Environnement

If you would invest  6,400  in Blackstone Loan Financing on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Blackstone Loan Financing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	68.42%
Values	Daily Returns

Blackstone Loan Financing  vs.  Seche Environnement SA

Blackstone Loan Financing

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Blackstone Loan Financing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, Blackstone Loan unveiled solid returns over the last few months and may actually be approaching a breakup point.

Seche Environnement

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seche Environnement SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Seche Environnement is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Blackstone Loan and Seche Environnement

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

The idea behind Blackstone Loan Financing and Seche Environnement SA 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.