Correlation Between Blackstone and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Blackstone and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Inflection Point Acquisition, you can compare the effects of market volatilities on Blackstone and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Inflection Point.
Diversification Opportunities for Blackstone and Inflection Point
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Blackstone and Inflection is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Blackstone i.e., Blackstone and Inflection Point go up and down completely randomly.
Pair Corralation between Blackstone and Inflection Point
Allowing for the 90-day total investment horizon Blackstone is expected to generate 14.33 times less return on investment than Inflection Point. But when comparing it to its historical volatility, Blackstone Group is 24.99 times less risky than Inflection Point. It trades about 0.09 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Inflection Point Acquisition on October 11, 2024 and sell it today you would earn a total of 1,340 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 82.63% |
Values | Daily Returns |
Blackstone Group vs. Inflection Point Acquisition
Performance |
Timeline |
Blackstone Group |
Inflection Point Acq |
Blackstone and Inflection Point Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blackstone and Inflection Point
The main advantage of trading using opposite Blackstone and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
Inflection Point vs. KKR Co LP | Inflection Point vs. Blackstone Group | Inflection Point vs. T Rowe Price | Inflection Point vs. Apollo Global 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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