Correlation Between Blackstone Gso and Pgim Global

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

By analyzing existing cross correlation between Blackstone Gso Senior and Pgim Global High, you can compare the effects of market volatilities on Blackstone Gso and Pgim Global 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 Pgim Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Gso and Pgim Global.

Diversification Opportunities for Blackstone Gso and Pgim Global

-0.09

Correlation Coefficient

Blackstone Gso  Pgim Global

Good diversification

The 3 months correlation between Blackstone and Pgim is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Senior and Pgim Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Global High 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 Senior are associated (or correlated) with Pgim Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Global High has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Pgim Global go up and down completely randomly.

Pair Corralation between Blackstone Gso and Pgim Global

Considering the 90-day investment horizon Blackstone Gso Senior is expected to under-perform the Pgim Global. But the fund apears to be less risky and, when comparing its historical volatility, Blackstone Gso Senior is 2.13 times less risky than Pgim Global. The fund trades about -0.04 of its potential returns per unit of risk. The Pgim Global High is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,220  in Pgim Global High on December 28, 2024 and sell it today you would earn a total of  132.00  from holding Pgim Global High or generate 10.82% return on investment over 90 days.

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

Blackstone Gso Senior  vs.  Pgim Global High

Blackstone Gso Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Gso Senior has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pgim Global High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Global High are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady technical indicators, Pgim Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Blackstone Gso and Pgim Global

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

The idea behind Blackstone Gso Senior and Pgim Global High 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 Transaction History module to view history of all your transactions and understand their impact on performance.