Correlation Between Panther Metals and Blackstone Loan

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

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

Diversification Opportunities for Panther Metals and Blackstone Loan

0.5

Correlation Coefficient

Panther Metals  Blackstone Loan

Very weak diversification

The 3 months correlation between Panther and Blackstone is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Panther Metals i.e., Panther Metals and Blackstone Loan go up and down completely randomly.

Pair Corralation between Panther Metals and Blackstone Loan

Assuming the 90 days trading horizon Panther Metals is expected to generate 1.04 times less return on investment than Blackstone Loan. In addition to that, Panther Metals is 3.52 times more volatile than Blackstone Loan Financing. It trades about 0.04 of its total potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.16 per unit of volatility. If you would invest  5,698  in Blackstone Loan Financing on September 30, 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 Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Panther Metals PLC  vs.  Blackstone Loan Financing

Panther Metals PLC

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Panther Metals PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Panther Metals may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 uncertain basic indicators, Blackstone Loan may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Panther Metals and Blackstone Loan

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

The idea behind Panther Metals PLC and Blackstone Loan Financing 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.