Correlation Between Rent A and Blackstone
Can any of the company-specific risk be diversified away by investing in both Rent A 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 Rent A and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rent A Center and Blackstone Group, you can compare the effects of market volatilities on Rent A 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 Rent A with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rent A and Blackstone.
Diversification Opportunities for Rent A and Blackstone
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rent and Blackstone is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rent A Center and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Rent A 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 Rent A Center 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 Rent A i.e., Rent A and Blackstone go up and down completely randomly.
Pair Corralation between Rent A and Blackstone
If you would invest 2,678 in Rent A Center on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Rent A Center or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Rent A Center vs. Blackstone Group
Performance |
| Timeline |
| Rent A Center |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blackstone Group |
Rent A and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rent A and Blackstone
The main advantage of trading using opposite Rent A and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rent A 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.| Rent A vs. Zijin Mining Group | Rent A vs. Kaltura | Rent A vs. Old Republic International | Rent A vs. Definitive Healthcare Corp |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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