Correlation Between SPDR Blackstone and Panagram Bbb

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

By analyzing existing cross correlation between SPDR Blackstone Senior and Panagram Bbb B Clo, you can compare the effects of market volatilities on SPDR Blackstone and Panagram Bbb 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 SPDR Blackstone with a short position of Panagram Bbb. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Blackstone and Panagram Bbb.

Diversification Opportunities for SPDR Blackstone and Panagram Bbb

0.81

Correlation Coefficient

SPDR Blackstone  Panagram Bbb

Very poor diversification

The 3 months correlation between SPDR and Panagram is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Blackstone Senior and Panagram Bbb B Clo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panagram Bbb B and SPDR Blackstone 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 SPDR Blackstone Senior are associated (or correlated) with Panagram Bbb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panagram Bbb B has no effect on the direction of SPDR Blackstone i.e., SPDR Blackstone and Panagram Bbb go up and down completely randomly.

Pair Corralation between SPDR Blackstone and Panagram Bbb

Given the investment horizon of 90 days SPDR Blackstone Senior is expected to generate 0.87 times more return on investment than Panagram Bbb. However, SPDR Blackstone Senior is 1.15 times less risky than Panagram Bbb. It trades about 0.03 of its potential returns per unit of risk. Panagram Bbb B Clo is currently generating about -0.04 per unit of risk. If you would invest  4,117  in SPDR Blackstone Senior on December 28, 2024 and sell it today you would earn a total of  7.00  from holding SPDR Blackstone Senior or generate 0.17% return on investment over 90 days.

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

SPDR Blackstone Senior  vs.  Panagram Bbb B Clo

SPDR Blackstone Senior

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Blackstone Senior are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy essential indicators, SPDR Blackstone is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Panagram Bbb B

Risk-Adjusted Performance

Very Weak

Over the last 90 days Panagram Bbb B Clo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Panagram Bbb is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SPDR Blackstone and Panagram Bbb

The main advantage of trading using opposite SPDR Blackstone and Panagram Bbb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Blackstone position performs unexpectedly, Panagram Bbb 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 Panagram Bbb will offset losses from the drop in Panagram Bbb's long position.

The idea behind SPDR Blackstone Senior and Panagram Bbb B Clo 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 Global Correlations module to find global opportunities by holding instruments from different markets.