Correlation Between MIRAMAR HOTEL and Blackstone

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Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL 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 MIRAMAR HOTEL and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIRAMAR HOTEL INV and Blackstone Group, you can compare the effects of market volatilities on MIRAMAR HOTEL 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 MIRAMAR HOTEL with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and Blackstone.

Diversification Opportunities for MIRAMAR HOTEL and Blackstone

MIRAMARBlackstoneDiversified AwayMIRAMARBlackstoneDiversified Away100%
0.49
  Correlation Coefficient

Very weak diversification

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

Pair Corralation between MIRAMAR HOTEL and Blackstone

Assuming the 90 days trading horizon MIRAMAR HOTEL is expected to generate 1.0 times less return on investment than Blackstone. In addition to that, MIRAMAR HOTEL is 1.67 times more volatile than Blackstone Group. It trades about 0.13 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.22 per unit of volatility. If you would invest  13,577  in Blackstone Group on September 13, 2024 and sell it today you would earn a total of  4,225  from holding Blackstone Group or generate 31.12% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

MIRAMAR HOTEL INV  vs.  Blackstone Group

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 01020304050
JavaScript chart by amCharts 3.21.15MRL BBN1
       Timeline  
MIRAMAR HOTEL INV 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MIRAMAR HOTEL INV are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, MIRAMAR HOTEL exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.90.9511.051.11.15
Blackstone Group 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 17 (%) 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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec140150160170180190

MIRAMAR HOTEL and Blackstone Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.1-7.56-5.03-2.490.02.665.378.0810.78 0.020.040.060.08
JavaScript chart by amCharts 3.21.15MRL BBN1
       Returns  

Pair Trading with MIRAMAR HOTEL and Blackstone

The main advantage of trading using opposite MIRAMAR HOTEL and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL 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 MIRAMAR HOTEL INV 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.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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