Correlation Between Nuveen SP and Blackstone Gso

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

By analyzing existing cross correlation between Nuveen SP 500 and Blackstone Gso Strategic, you can compare the effects of market volatilities on Nuveen SP and Blackstone Gso 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 Nuveen SP with a short position of Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen SP and Blackstone Gso.

Diversification Opportunities for Nuveen SP and Blackstone Gso

0.87

Correlation Coefficient

Nuveen SP  Blackstone Gso

Very poor diversification

The 3 months correlation between Nuveen and Blackstone is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen SP 500 and Blackstone Gso Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Strategic and Nuveen 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 Nuveen SP 500 are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Strategic has no effect on the direction of Nuveen SP i.e., Nuveen SP and Blackstone Gso go up and down completely randomly.

Pair Corralation between Nuveen SP and Blackstone Gso

Given the investment horizon of 90 days Nuveen SP 500 is expected to generate 1.21 times more return on investment than Blackstone Gso. However, Nuveen SP is 1.21 times more volatile than Blackstone Gso Strategic. It trades about 0.2 of its potential returns per unit of risk. Blackstone Gso Strategic is currently generating about 0.18 per unit of risk. If you would invest  1,338  in Nuveen SP 500 on September 13, 2024 and sell it today you would earn a total of  87.00  from holding Nuveen SP 500 or generate 6.5% return on investment over 90 days.

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

Nuveen SP 500  vs.  Blackstone Gso Strategic

Nuveen SP 500

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen SP 500 are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Nuveen SP may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Blackstone Gso Strategic

Risk-Adjusted Performance

13 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Strategic are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Nuveen SP and Blackstone Gso

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

The idea behind Nuveen SP 500 and Blackstone Gso Strategic 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.