Correlation Between Blackstone and Cion Investment

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

By analyzing existing cross correlation between Blackstone Group and Cion Investment Corp, you can compare the effects of market volatilities on Blackstone and Cion Investment 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 Blackstone with a short position of Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Cion Investment.

Diversification Opportunities for Blackstone and Cion Investment

-0.4

Correlation Coefficient

Blackstone  Cion Investment

Very good diversification

The 3 months correlation between Blackstone and Cion is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp and 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 Blackstone Group are associated (or correlated) with Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Blackstone i.e., Blackstone and Cion Investment go up and down completely randomly.

Pair Corralation between Blackstone and Cion Investment

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 1.22 times more return on investment than Cion Investment. However, Blackstone is 1.22 times more volatile than Cion Investment Corp. It trades about 0.35 of its potential returns per unit of risk. Cion Investment Corp is currently generating about -0.12 per unit of risk. If you would invest  16,606  in Blackstone Group on August 24, 2024 and sell it today you would earn a total of  1,897  from holding Blackstone Group or generate 11.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Blackstone Group  vs.  Cion Investment Corp

Blackstone Group

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Cion Investment Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cion Investment Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Cion Investment is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Blackstone and Cion Investment

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

The idea behind Blackstone Group and Cion Investment Corp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.