Correlation Between Blackstone Loan and GreenX Metals

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

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

Diversification Opportunities for Blackstone Loan and GreenX Metals

-0.62

Correlation Coefficient

Blackstone Loan  GreenX Metals

Excellent diversification

The 3 months correlation between Blackstone and GreenX is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Loan Financing and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Blackstone Loan 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 Loan Financing are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Blackstone Loan i.e., Blackstone Loan and GreenX Metals go up and down completely randomly.

Pair Corralation between Blackstone Loan and GreenX Metals

Assuming the 90 days trading horizon Blackstone Loan Financing is expected to generate 0.25 times more return on investment than GreenX Metals. However, Blackstone Loan Financing is 4.01 times less risky than GreenX Metals. It trades about 0.16 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.01 per unit of risk. If you would invest  5,698  in Blackstone Loan Financing on September 29, 2024 and sell it today you would earn a total of  702.00  from holding Blackstone Loan Financing or generate 12.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Blackstone Loan Financing  vs.  GreenX Metals

Blackstone Loan Financing

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Loan Financing are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Blackstone Loan may actually be approaching a critical reversion point that can send shares even higher in January 2025.

GreenX Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, GreenX Metals is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Blackstone Loan and GreenX Metals

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

The idea behind Blackstone Loan Financing and GreenX Metals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..