Correlation Between Blackstone Gso and Easterly Snow

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

Diversification Opportunities for Blackstone Gso and Easterly Snow

0.13

Correlation Coefficient

Blackstone Gso  Easterly Snow

Average diversification

The 3 months correlation between Blackstone and Easterly is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Gso Senior and Easterly Snow Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easterly Snow Longshort 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 Easterly Snow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easterly Snow Longshort has no effect on the direction of Blackstone Gso i.e., Blackstone Gso and Easterly Snow go up and down completely randomly.

Pair Corralation between Blackstone Gso and Easterly Snow

Considering the 90-day investment horizon Blackstone Gso Senior is expected to generate 0.55 times more return on investment than Easterly Snow. However, Blackstone Gso Senior is 1.83 times less risky than Easterly Snow. It trades about 0.13 of its potential returns per unit of risk. Easterly Snow Longshort is currently generating about -0.07 per unit of risk. If you would invest  1,390  in Blackstone Gso Senior on September 25, 2024 and sell it today you would earn a total of  64.00  from holding Blackstone Gso Senior or generate 4.6% return on investment over 90 days.

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

Blackstone Gso Senior  vs.  Easterly Snow Longshort

Blackstone Gso Senior

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Senior are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Blackstone Gso is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Easterly Snow Longshort

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Easterly Snow Longshort has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Easterly Snow is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackstone Gso and Easterly Snow

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

The idea behind Blackstone Gso Senior and Easterly Snow Longshort 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.