Correlation Between Highland Global and Blackstone Gso

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

By analyzing existing cross correlation between Highland Global Allocation and Blackstone Gso Long, you can compare the effects of market volatilities on Highland Global and Blackstone Gso 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 Highland Global with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highland Global and Blackstone Gso.

Diversification Opportunities for Highland Global and Blackstone Gso

-0.01

Correlation Coefficient

Highland Global  Blackstone Gso

Good diversification

The 3 months correlation between Highland and Blackstone is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Highland Global Allocation and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long and Highland Global 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 Highland Global Allocation are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of Highland Global i.e., Highland Global and Blackstone Gso go up and down completely randomly.

Pair Corralation between Highland Global and Blackstone Gso

Given the investment horizon of 90 days Highland Global Allocation is expected to generate 1.83 times more return on investment than Blackstone Gso. However, Highland Global is 1.83 times more volatile than Blackstone Gso Long. It trades about 0.36 of its potential returns per unit of risk. Blackstone Gso Long is currently generating about -0.04 per unit of risk. If you would invest  657.00  in Highland Global Allocation on December 30, 2024 and sell it today you would earn a total of  177.00  from holding Highland Global Allocation or generate 26.94% return on investment over 90 days.

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

Highland Global Allocation  vs.  Blackstone Gso Long

Highland Global Allo

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Global Allocation are ranked lower than 28 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak essential indicators, Highland Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Blackstone Gso Long

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Gso Long has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Highland Global and Blackstone Gso

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

The idea behind Highland Global Allocation and Blackstone Gso Long 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.