Correlation Between T Rowe and Blackstone Secured

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

By analyzing existing cross correlation between T Rowe Price and Blackstone Secured Lending, you can compare the effects of market volatilities on T Rowe and Blackstone Secured 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 T Rowe with a short position of Blackstone Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rowe and Blackstone Secured.

Diversification Opportunities for T Rowe and Blackstone Secured

0.19

Correlation Coefficient

T Rowe  Blackstone Secured

Average diversification

The 3 months correlation between PRGTX and Blackstone is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding T Rowe Price and Blackstone Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Secured and T Rowe 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 T Rowe Price are associated (or correlated) with Blackstone Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Secured has no effect on the direction of T Rowe i.e., T Rowe and Blackstone Secured go up and down completely randomly.

Pair Corralation between T Rowe and Blackstone Secured

Assuming the 90 days horizon T Rowe Price is expected to under-perform the Blackstone Secured. In addition to that, T Rowe is 1.58 times more volatile than Blackstone Secured Lending. It trades about -0.08 of its total potential returns per unit of risk. Blackstone Secured Lending is currently generating about 0.06 per unit of volatility. If you would invest  3,173  in Blackstone Secured Lending on December 21, 2024 and sell it today you would earn a total of  121.00  from holding Blackstone Secured Lending or generate 3.81% return on investment over 90 days.

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

T Rowe Price  vs.  Blackstone Secured Lending

T Rowe Price

Risk-Adjusted Performance

Very Weak

Over the last 90 days T Rowe Price has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Blackstone Secured

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Secured Lending are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Blackstone Secured is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with T Rowe and Blackstone Secured

The main advantage of trading using opposite T Rowe and Blackstone Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rowe position performs unexpectedly, Blackstone Secured 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 Secured will offset losses from the drop in Blackstone Secured's long position.

The idea behind T Rowe Price and Blackstone Secured Lending 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.