Correlation Between Sprott Physical and Blackstone
Can any of the company-specific risk be diversified away by investing in both Sprott Physical 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 Sprott Physical and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sprott Physical Gold and Blackstone Group, you can compare the effects of market volatilities on Sprott Physical 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 Sprott Physical with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sprott Physical and Blackstone.
Diversification Opportunities for Sprott Physical and Blackstone
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sprott and Blackstone is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sprott Physical Gold and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Sprott Physical 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 Sprott Physical Gold 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 Sprott Physical i.e., Sprott Physical and Blackstone go up and down completely randomly.
Pair Corralation between Sprott Physical and Blackstone
Given the investment horizon of 90 days Sprott Physical Gold is expected to generate 0.53 times more return on investment than Blackstone. However, Sprott Physical Gold is 1.9 times less risky than Blackstone. It trades about 0.26 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.07 per unit of risk. If you would invest 1,692 in Sprott Physical Gold on January 26, 2024 and sell it today you would earn a total of 107.00 from holding Sprott Physical Gold or generate 6.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.3% |
Values | Daily Returns |
Sprott Physical Gold vs. Blackstone Group
Performance |
Timeline |
Sprott Physical Gold |
Blackstone Group |
Sprott Physical and Blackstone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sprott Physical and Blackstone
The main advantage of trading using opposite Sprott Physical and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sprott Physical 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.Sprott Physical vs. Vanguard SP 500 | Sprott Physical vs. Schwab Large Cap ETF | Sprott Physical vs. Microsoft | Sprott Physical vs. HP Inc |
Blackstone vs. Federated Premier Municipal | Blackstone vs. Blackrock Muniyield | Blackstone vs. NXG NextGen Infrastructure | Blackstone vs. Brightsphere Investment Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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