Correlation Between Macquariefirst and Blackstone Gso

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

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

Diversification Opportunities for Macquariefirst and Blackstone Gso

0.84

Correlation Coefficient

Macquariefirst  Blackstone Gso

Very poor diversification

The 3 months correlation between Macquariefirst and Blackstone is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Macquariefirst Tr Global and Blackstone Gso Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Senior and Macquariefirst 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 Macquariefirst Tr Global 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 Senior has no effect on the direction of Macquariefirst i.e., Macquariefirst and Blackstone Gso go up and down completely randomly.

Pair Corralation between Macquariefirst and Blackstone Gso

Considering the 90-day investment horizon Macquariefirst is expected to generate 3.67 times less return on investment than Blackstone Gso. In addition to that, Macquariefirst is 1.91 times more volatile than Blackstone Gso Senior. It trades about 0.02 of its total potential returns per unit of risk. Blackstone Gso Senior is currently generating about 0.15 per unit of volatility. If you would invest  1,400  in Blackstone Gso Senior on September 3, 2024 and sell it today you would earn a total of  65.00  from holding Blackstone Gso Senior or generate 4.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	23.44%
Values	Daily Returns

Macquariefirst Tr Global  vs.  Blackstone Gso Senior

Macquariefirst Tr Global

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Macquariefirst Tr Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Macquariefirst is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Blackstone Gso Senior

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Senior are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. Despite quite persistent basic indicators, Blackstone Gso is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Macquariefirst and Blackstone Gso

The main advantage of trading using opposite Macquariefirst and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macquariefirst 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 Macquariefirst Tr Global and Blackstone Gso Senior 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.

Check out your portfolio center.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.