Correlation Between Blackstone Loan and Walmart

Can any of the company-specific risk be diversified away by investing in both Blackstone Loan and Walmart 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 Walmart 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 Walmart, you can compare the effects of market volatilities on Blackstone Loan and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Loan and Walmart.

Diversification Opportunities for Blackstone Loan and Walmart

0.39

Correlation Coefficient

Blackstone Loan  Walmart

Weak diversification

The 3 months correlation between Blackstone and Walmart is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Walmart go up and down completely randomly.

Pair Corralation between Blackstone Loan and Walmart

If you would invest  5,960  in Walmart on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Walmart or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	75.0%
Values	Daily Returns

Blackstone Loan Financing  vs.  Walmart

Blackstone Loan Financing

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Loan Financing are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Blackstone Loan unveiled solid returns over the last few months and may actually be approaching a breakup point.

Walmart

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Walmart are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Walmart is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Blackstone Loan and Walmart

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

The idea behind Blackstone Loan Financing and Walmart 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.