Correlation Between Blackstone Loan and Eagle Eye

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

Diversification Opportunities for Blackstone Loan and Eagle Eye

0.53

Correlation Coefficient

Blackstone Loan  Eagle Eye

Very weak diversification

The 3 months correlation between Blackstone and Eagle is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Eagle Eye Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Eye Solutions 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 Eagle Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Eye Solutions has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Eagle Eye go up and down completely randomly.

Pair Corralation between Blackstone Loan and Eagle Eye

Assuming the 90 days trading horizon Blackstone Loan Financing is expected to under-perform the Eagle Eye. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Loan Financing is 3.51 times less risky than Eagle Eye. The stock trades about -0.22 of its potential returns per unit of risk. The Eagle Eye Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  46,500  in Eagle Eye Solutions on October 4, 2024 and sell it today you would earn a total of  100.00  from holding Eagle Eye Solutions or generate 0.22% return on investment over 90 days.

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

Blackstone Loan Financing  vs.  Eagle Eye Solutions

Blackstone Loan Financing

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Loan Financing are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Blackstone Loan may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Eagle Eye Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eagle Eye Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Eagle Eye is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blackstone Loan and Eagle Eye

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

The idea behind Blackstone Loan Financing and Eagle Eye Solutions 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.