Correlation Between Blackrock Muni and Blackstone Gso

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

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

Diversification Opportunities for Blackrock Muni and Blackstone Gso

-0.01

Correlation Coefficient

Blackrock Muni  Blackstone Gso

Good diversification

The 3 months correlation between Blackrock and Blackstone is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate 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 Blackrock Muni 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 Blackrock Muni Intermediate 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 Blackrock Muni i.e., Blackrock Muni and Blackstone Gso go up and down completely randomly.

Pair Corralation between Blackrock Muni and Blackstone Gso

Considering the 90-day investment horizon Blackrock Muni Intermediate is expected to generate 1.17 times more return on investment than Blackstone Gso. However, Blackrock Muni is 1.17 times more volatile than Blackstone Gso Long. It trades about 0.02 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  1,205  in Blackrock Muni Intermediate on December 30, 2024 and sell it today you would earn a total of  4.00  from holding Blackrock Muni Intermediate or generate 0.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	59.68%
Values	Daily Returns

Blackrock Muni Intermediate  vs.  Blackstone Gso Long

Blackrock Muni Inter

Risk-Adjusted Performance

Weak

Over the last 90 days Blackrock Muni Intermediate has generated negative risk-adjusted returns adding no value to fund investors. Despite fairly strong basic indicators, Blackrock Muni is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 Blackrock Muni and Blackstone Gso

The main advantage of trading using opposite Blackrock Muni and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni 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 Blackrock Muni Intermediate 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.