Correlation Between Blackstone and Ameritrans Capital

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

By analyzing existing cross correlation between Blackstone Group and Ameritrans Capital Corp, you can compare the effects of market volatilities on Blackstone and Ameritrans Capital 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 Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Ameritrans Capital.

Diversification Opportunities for Blackstone and Ameritrans Capital

0.0

Correlation Coefficient

Blackstone  Ameritrans Capital

Pay attention - limited upside

The 3 months correlation between Blackstone and Ameritrans is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp 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 Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Blackstone i.e., Blackstone and Ameritrans Capital go up and down completely randomly.

Pair Corralation between Blackstone and Ameritrans Capital

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.16 times more return on investment than Ameritrans Capital. However, Blackstone Group is 6.1 times less risky than Ameritrans Capital. It trades about 0.15 of its potential returns per unit of risk. Ameritrans Capital Corp is currently generating about -0.12 per unit of risk. If you would invest  14,830  in Blackstone Group on October 6, 2024 and sell it today you would earn a total of  2,761  from holding Blackstone Group or generate 18.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Blackstone Group  vs.  Ameritrans Capital Corp

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.

Ameritrans Capital Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ameritrans Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Blackstone and Ameritrans Capital

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

The idea behind Blackstone Group and Ameritrans Capital Corp 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.