Correlation Between Blackstone Secured and Tiaa Cref

Can any of the company-specific risk be diversified away by investing in both Blackstone Secured and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Inflation Link, you can compare the effects of market volatilities on Blackstone Secured and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone Secured and Tiaa Cref.

Diversification Opportunities for Blackstone Secured and Tiaa Cref

0.46

Correlation Coefficient

Blackstone Secured  Tiaa Cref

Very weak diversification

The 3 months correlation between Blackstone and Tiaa is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Secured Lending and Tiaa Cref Inflation Link in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Inflation 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Inflation has no effect on the direction of Blackstone Secured i.e., Blackstone Secured and Tiaa Cref go up and down completely randomly.

Pair Corralation between Blackstone Secured and Tiaa Cref

Given the investment horizon of 90 days Blackstone Secured is expected to generate 1.19 times less return on investment than Tiaa Cref. In addition to that, Blackstone Secured is 5.91 times more volatile than Tiaa Cref Inflation Link. It trades about 0.04 of its total potential returns per unit of risk. Tiaa Cref Inflation Link is currently generating about 0.28 per unit of volatility. If you would invest  1,045  in Tiaa Cref Inflation Link on December 24, 2024 and sell it today you would earn a total of  34.00  from holding Tiaa Cref Inflation Link or generate 3.25% return on investment over 90 days.

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

Blackstone Secured Lending  vs.  Tiaa Cref Inflation Link

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.

Tiaa Cref Inflation

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Inflation Link are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Tiaa Cref is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blackstone Secured and Tiaa Cref

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

The idea behind Blackstone Secured Lending and Tiaa Cref Inflation Link 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.