Correlation Between Blackstone and BRKH Old

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

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

Diversification Opportunities for Blackstone and BRKH Old

0.0

Correlation Coefficient

Blackstone  BRKH Old

Pay attention - limited upside

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

Pair Corralation between Blackstone and BRKH Old

If you would invest (100.00) in BRKH Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding BRKH Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blackstone Group  vs.  BRKH Old

Blackstone Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

BRKH Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days BRKH Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward-looking signals, BRKH Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Blackstone and BRKH Old

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

The idea behind Blackstone Group and BRKH Old 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.