Correlation Between Blackstone Loan and Neometals

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

Diversification Opportunities for Blackstone Loan and Neometals

-0.16

Correlation Coefficient

Blackstone Loan  Neometals

Good diversification

The 3 months correlation between Blackstone and Neometals is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and Neometals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neometals 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 Neometals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neometals has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and Neometals go up and down completely randomly.

Pair Corralation between Blackstone Loan and Neometals

Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 1.87 times more return on investment than Neometals. However, Blackstone Loan is 1.87 times more volatile than Neometals. It trades about 0.29 of its potential returns per unit of risk. Neometals is currently generating about -0.21 per unit of risk. If you would invest  5,748  in Blackstone Loan Financing on August 31, 2024 and sell it today you would earn a total of  752.00  from holding Blackstone Loan Financing or generate 13.08% return on investment over 90 days.

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

Blackstone Loan Financing  vs.  Neometals

Blackstone Loan Financing

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Loan Financing are ranked lower than 14 (%) 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.

Neometals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neometals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Blackstone Loan and Neometals

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

The idea behind Blackstone Loan Financing and Neometals 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.