Correlation Between Blackstone and Guggenheim Strategic
Can any of the company-specific risk be diversified away by investing in both Blackstone and Guggenheim Strategic 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 Guggenheim Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on Blackstone and Guggenheim Strategic 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 Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Guggenheim Strategic.
Diversification Opportunities for Blackstone and Guggenheim Strategic
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blackstone and Guggenheim is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic 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 Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of Blackstone i.e., Blackstone and Guggenheim Strategic go up and down completely randomly.
Pair Corralation between Blackstone and Guggenheim Strategic
Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 3.6 times more return on investment than Guggenheim Strategic. However, Blackstone is 3.6 times more volatile than Guggenheim Strategic Opportunities. It trades about 0.24 of its potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.14 per unit of risk. If you would invest 14,253 in Blackstone Group on September 11, 2024 and sell it today you would earn a total of 4,282 from holding Blackstone Group or generate 30.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Blackstone Group vs. Guggenheim Strategic Opportuni
Performance |
Timeline |
Blackstone Group |
Guggenheim Strategic |
Blackstone and Guggenheim Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackstone and Guggenheim Strategic
The main advantage of trading using opposite Blackstone and Guggenheim Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Guggenheim Strategic 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 Guggenheim Strategic will offset losses from the drop in Guggenheim Strategic's long position.Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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