Correlation Between CEOTRONICS (CEKSG) and Blackstone

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

By analyzing existing cross correlation between CEOTRONICS and Blackstone Group, you can compare the effects of market volatilities on CEOTRONICS (CEKSG) and Blackstone 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 CEOTRONICS (CEKSG) with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEOTRONICS (CEKSG) and Blackstone.

Diversification Opportunities for CEOTRONICS (CEKSG) and Blackstone

0.44

Correlation Coefficient

CEOTRONICS (CEKSG)  Blackstone

Very weak diversification

The 3 months correlation between CEOTRONICS and Blackstone is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CEOTRONICS and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and CEOTRONICS (CEKSG) 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 CEOTRONICS are associated (or correlated) with Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of CEOTRONICS (CEKSG) i.e., CEOTRONICS (CEKSG) and Blackstone go up and down completely randomly.

Pair Corralation between CEOTRONICS (CEKSG) and Blackstone

Assuming the 90 days trading horizon CEOTRONICS is expected to under-perform the Blackstone. In addition to that, CEOTRONICS (CEKSG) is 1.33 times more volatile than Blackstone Group. It trades about -0.36 of its total potential returns per unit of risk. Blackstone Group is currently generating about -0.15 per unit of volatility. If you would invest  18,044  in Blackstone Group on October 8, 2024 and sell it today you would lose (930.00) from holding Blackstone Group or give up 5.15% of portfolio value over 90 days.

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

CEOTRONICS  vs.  Blackstone Group

CEOTRONICS (CEKSG)

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CEOTRONICS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CEOTRONICS (CEKSG) may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Blackstone Group

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Blackstone reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CEOTRONICS (CEKSG) and Blackstone

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

The idea behind CEOTRONICS and Blackstone Group 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.