Correlation Between COMBA TELECOM and Blackstone

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

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

Diversification Opportunities for COMBA TELECOM and Blackstone

-0.49

Correlation Coefficient

COMBA TELECOM  Blackstone

Very good diversification

The 3 months correlation between COMBA and Blackstone is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and COMBA TELECOM 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 COMBA TELECOM SYST 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 COMBA TELECOM i.e., COMBA TELECOM and Blackstone go up and down completely randomly.

Pair Corralation between COMBA TELECOM and Blackstone

Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to under-perform the Blackstone. In addition to that, COMBA TELECOM is 1.26 times more volatile than Blackstone Group. It trades about 0.0 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.11 per unit of volatility. If you would invest  8,147  in Blackstone Group on October 22, 2024 and sell it today you would earn a total of  9,259  from holding Blackstone Group or generate 113.65% return on investment over 90 days.

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

COMBA TELECOM SYST  vs.  Blackstone Group

COMBA TELECOM SYST

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in COMBA TELECOM SYST are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, COMBA TELECOM is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Blackstone Group

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 8 (%) 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 COMBA TELECOM and Blackstone

The main advantage of trading using opposite COMBA TELECOM and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM 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 COMBA TELECOM SYST 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.