Correlation Between IShares SP and Blackstone
Can any of the company-specific risk be diversified away by investing in both IShares SP 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 IShares SP and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and Blackstone Group, you can compare the effects of market volatilities on IShares SP 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 IShares SP with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Blackstone.
Diversification Opportunities for IShares SP and Blackstone
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Blackstone is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and IShares SP 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 iShares SP 500 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 IShares SP i.e., IShares SP and Blackstone go up and down completely randomly.
Pair Corralation between IShares SP and Blackstone
Considering the 90-day investment horizon iShares SP 500 is expected to generate 0.37 times more return on investment than Blackstone. However, iShares SP 500 is 2.7 times less risky than Blackstone. It trades about -0.13 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.12 per unit of risk. If you would invest 18,330 in iShares SP 500 on January 24, 2024 and sell it today you would lose (359.00) from holding iShares SP 500 or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP 500 vs. Blackstone Group
Performance |
| Timeline |
| iShares SP 500 |
| Blackstone Group |
IShares SP and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and Blackstone
The main advantage of trading using opposite IShares SP and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP 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.| IShares SP vs. Northern Lights | IShares SP vs. HUMANA INC | IShares SP vs. Aquagold International | IShares SP vs. Barloworld Ltd ADR |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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