Correlation Between Pioneer Floating and Blackstone Gso

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

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

Diversification Opportunities for Pioneer Floating and Blackstone Gso

0.89

Correlation Coefficient

Pioneer Floating  Blackstone Gso

Very poor diversification

The 3 months correlation between Pioneer and Blackstone is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Floating Rate and Blackstone Gso Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Strategic and Pioneer Floating 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 Pioneer Floating Rate 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 Strategic has no effect on the direction of Pioneer Floating i.e., Pioneer Floating and Blackstone Gso go up and down completely randomly.

Pair Corralation between Pioneer Floating and Blackstone Gso

Considering the 90-day investment horizon Pioneer Floating is expected to generate 1.64 times less return on investment than Blackstone Gso. But when comparing it to its historical volatility, Pioneer Floating Rate is 1.01 times less risky than Blackstone Gso. It trades about 0.07 of its potential returns per unit of risk. Blackstone Gso Strategic is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,114  in Blackstone Gso Strategic on September 28, 2024 and sell it today you would earn a total of  109.00  from holding Blackstone Gso Strategic or generate 9.78% return on investment over 90 days.

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

Pioneer Floating Rate  vs.  Blackstone Gso Strategic

Pioneer Floating Rate

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Floating Rate are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Pioneer Floating is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Blackstone Gso Strategic

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Strategic are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat 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 Pioneer Floating and Blackstone Gso

The main advantage of trading using opposite Pioneer Floating and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Floating 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 Pioneer Floating Rate and Blackstone Gso Strategic 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.