Correlation Between NorthView Acquisition and Blackstone

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

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

Diversification Opportunities for NorthView Acquisition and Blackstone

-0.43

Correlation Coefficient

NorthView Acquisition  Blackstone

Very good diversification

The 3 months correlation between NorthView and Blackstone is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding NorthView Acquisition and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and NorthView Acquisition 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 NorthView Acquisition 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 NorthView Acquisition i.e., NorthView Acquisition and Blackstone go up and down completely randomly.

Pair Corralation between NorthView Acquisition and Blackstone

Assuming the 90 days horizon NorthView Acquisition is expected to under-perform the Blackstone. In addition to that, NorthView Acquisition is 11.51 times more volatile than Blackstone Group. It trades about -0.02 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.12 per unit of volatility. If you would invest  15,234  in Blackstone Group on September 29, 2024 and sell it today you would earn a total of  2,167  from holding Blackstone Group or generate 14.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	66.67%
Values	Daily Returns

NorthView Acquisition  vs.  Blackstone Group

NorthView Acquisition

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days NorthView Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Blackstone Group

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NorthView Acquisition and Blackstone

The main advantage of trading using opposite NorthView Acquisition and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NorthView Acquisition 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.

The idea behind NorthView Acquisition and Blackstone Group 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..