Correlation Between Blackstone and Abrdn Emerging

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

By analyzing existing cross correlation between Blackstone Group and Abrdn Emerging Markets, you can compare the effects of market volatilities on Blackstone and Abrdn Emerging 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 with a short position of Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Abrdn Emerging.

Diversification Opportunities for Blackstone and Abrdn Emerging

-0.83

Correlation Coefficient

Blackstone  Abrdn Emerging

Pay attention - limited upside

The 3 months correlation between Blackstone and Abrdn is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets and Blackstone 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 Group are associated (or correlated) with Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Blackstone i.e., Blackstone and Abrdn Emerging go up and down completely randomly.

Pair Corralation between Blackstone and Abrdn Emerging

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.49 times more return on investment than Abrdn Emerging. However, Blackstone is 1.49 times more volatile than Abrdn Emerging Markets. It trades about 0.06 of its potential returns per unit of risk. Abrdn Emerging Markets is currently generating about -0.04 per unit of risk. If you would invest  16,962  in Blackstone Group on October 6, 2024 and sell it today you would earn a total of  629.00  from holding Blackstone Group or generate 3.71% return on investment over 90 days.

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

Blackstone Group  vs.  Abrdn Emerging Markets

Blackstone Group

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Abrdn Emerging Markets

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Abrdn Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. Despite latest fragile performance, the Fund's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the mutual fund stockholders.

Pair Trading with Blackstone and Abrdn Emerging

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

The idea behind Blackstone Group and Abrdn Emerging Markets 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.