Correlation Between Blackstone and Queens Road

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Blackstone and Queens Road 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 Queens Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Queens Road Capital, you can compare the effects of market volatilities on Blackstone and Queens Road 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 Queens Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Queens Road.

Diversification Opportunities for Blackstone and Queens Road

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Blackstone and Queens is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Queens Road Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queens Road Capital 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 Queens Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queens Road Capital has no effect on the direction of Blackstone i.e., Blackstone and Queens Road go up and down completely randomly.

Pair Corralation between Blackstone and Queens Road

Allowing for the 90-day total investment horizon Blackstone is expected to generate 1.19 times less return on investment than Queens Road. But when comparing it to its historical volatility, Blackstone Group is 1.1 times less risky than Queens Road. It trades about 0.08 of its potential returns per unit of risk. Queens Road Capital is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  45.00  in Queens Road Capital on January 17, 2024 and sell it today you would earn a total of  23.00  from holding Queens Road Capital or generate 51.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.6%
ValuesDaily Returns

Blackstone Group  vs.  Queens Road Capital

 Performance 
       Timeline  
Blackstone Group 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Blackstone is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
Queens Road Capital 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Queens Road Capital are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, Queens Road reported solid returns over the last few months and may actually be approaching a breakup point.

Blackstone and Queens Road Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blackstone and Queens Road

The main advantage of trading using opposite Blackstone and Queens Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone position performs unexpectedly, Queens Road 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 Queens Road will offset losses from the drop in Queens Road's long position.
The idea behind Blackstone Group and Queens Road Capital 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.
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital