Correlation Between RiverNorthDoubleLine and Blackstone

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

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

Diversification Opportunities for RiverNorthDoubleLine and Blackstone

-0.87

Correlation Coefficient

RiverNorthDoubleLine  Blackstone

Pay attention - limited upside

The 3 months correlation between RiverNorthDoubleLine and Blackstone is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding RiverNorthDoubleLine Strategic and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and RiverNorthDoubleLine 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 RiverNorthDoubleLine Strategic Opportunity 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 RiverNorthDoubleLine i.e., RiverNorthDoubleLine and Blackstone go up and down completely randomly.

Pair Corralation between RiverNorthDoubleLine and Blackstone

Considering the 90-day investment horizon RiverNorthDoubleLine Strategic Opportunity is expected to under-perform the Blackstone. But the etf apears to be less risky and, when comparing its historical volatility, RiverNorthDoubleLine Strategic Opportunity is 3.2 times less risky than Blackstone. The etf trades about -0.13 of its potential returns per unit of risk. The Blackstone Group is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  14,148  in Blackstone Group on September 10, 2024 and sell it today you would earn a total of  4,387  from holding Blackstone Group or generate 31.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

RiverNorthDoubleLine Strategic  vs.  Blackstone Group

RiverNorthDoubleLine

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RiverNorthDoubleLine Strategic Opportunity has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, RiverNorthDoubleLine is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Blackstone Group

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RiverNorthDoubleLine and Blackstone

The main advantage of trading using opposite RiverNorthDoubleLine and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RiverNorthDoubleLine 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 RiverNorthDoubleLine Strategic Opportunity 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..