Correlation Between Thornburg Income and Blackstone Gso

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

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

Diversification Opportunities for Thornburg Income and Blackstone Gso

-0.32

Correlation Coefficient

Thornburg Income  Blackstone Gso

Very good diversification

The 3 months correlation between Thornburg and Blackstone is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg Income Builder 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 Thornburg Income 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 Thornburg Income Builder 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 Thornburg Income i.e., Thornburg Income and Blackstone Gso go up and down completely randomly.

Pair Corralation between Thornburg Income and Blackstone Gso

Given the investment horizon of 90 days Thornburg Income is expected to generate 14.02 times less return on investment than Blackstone Gso. In addition to that, Thornburg Income is 1.72 times more volatile than Blackstone Gso Strategic. It trades about 0.01 of its total potential returns per unit of risk. Blackstone Gso Strategic is currently generating about 0.18 per unit of volatility. If you would invest  1,197  in Blackstone Gso Strategic on September 3, 2024 and sell it today you would earn a total of  62.00  from holding Blackstone Gso Strategic or generate 5.18% return on investment over 90 days.

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

Thornburg Income Builder  vs.  Blackstone Gso Strategic

Thornburg Income Builder

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thornburg Income Builder has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Thornburg Income is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Blackstone Gso Strategic

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Strategic are ranked lower than 14 (%) 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 Thornburg Income and Blackstone Gso

The main advantage of trading using opposite Thornburg Income and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg Income 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 Thornburg Income Builder 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.