Correlation Between 1st Prestige and Blackstone
Can any of the company-specific risk be diversified away by investing in both 1st Prestige 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 1st Prestige and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1st Prestige Wealth and Blackstone Group, you can compare the effects of market volatilities on 1st Prestige 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 1st Prestige with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1st Prestige and Blackstone.
Diversification Opportunities for 1st Prestige and Blackstone
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 1st and Blackstone is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding 1st Prestige Wealth and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and 1st Prestige 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 1st Prestige Wealth 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 1st Prestige i.e., 1st Prestige and Blackstone go up and down completely randomly.
Pair Corralation between 1st Prestige and Blackstone
Given the investment horizon of 90 days 1st Prestige Wealth is expected to generate 4.42 times more return on investment than Blackstone. However, 1st Prestige is 4.42 times more volatile than Blackstone Group. It trades about 0.26 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.05 per unit of risk. If you would invest 0.07 in 1st Prestige Wealth on January 19, 2024 and sell it today you would earn a total of 0.04 from holding 1st Prestige Wealth or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
1st Prestige Wealth vs. Blackstone Group
Performance |
| Timeline |
| 1st Prestige Wealth |
| Blackstone Group |
1st Prestige and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1st Prestige and Blackstone
The main advantage of trading using opposite 1st Prestige and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1st Prestige 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.| 1st Prestige vs. Pfizer Inc | 1st Prestige vs. Heartland Financial USA | 1st Prestige vs. Conflux Network | 1st Prestige vs. Citigroup Capital XIII |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
Check out your portfolio center.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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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