Correlation Between Blackstone Secured and Blackrock Large

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

By analyzing existing cross correlation between Blackstone Secured Lending and Blackrock Large Cap, you can compare the effects of market volatilities on Blackstone Secured and Blackrock Large 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 Secured with a short position of Blackrock Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Blackrock Large.

Diversification Opportunities for Blackstone Secured and Blackrock Large

0.1

Correlation Coefficient

Blackstone Secured  Blackrock Large

Average diversification

The 3 months correlation between Blackstone and Blackrock is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Blackrock Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Large Cap and Blackstone Secured 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 Secured Lending are associated (or correlated) with Blackrock Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Large Cap has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Blackrock Large go up and down completely randomly.

Pair Corralation between Blackstone Secured and Blackrock Large

Given the investment horizon of 90 days Blackstone Secured Lending is expected to generate 0.72 times more return on investment than Blackrock Large. However, Blackstone Secured Lending is 1.39 times less risky than Blackrock Large. It trades about 0.04 of its potential returns per unit of risk. Blackrock Large Cap is currently generating about -0.12 per unit of risk. If you would invest  3,224  in Blackstone Secured Lending on December 24, 2024 and sell it today you would earn a total of  76.00  from holding Blackstone Secured Lending or generate 2.36% return on investment over 90 days.

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

Blackstone Secured Lending  vs.  Blackrock Large Cap

Blackstone Secured

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Secured Lending are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Blackstone Secured is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Blackrock Large Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackrock Large Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Blackstone Secured and Blackrock Large

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

The idea behind Blackstone Secured Lending and Blackrock Large Cap 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.