Correlation Between Altisource Asset and Blackstone

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Can any of the company-specific risk be diversified away by investing in both Altisource Asset 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 Altisource Asset and Blackstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altisource Asset Management and Blackstone, you can compare the effects of market volatilities on Altisource Asset 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 Altisource Asset with a short position of Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altisource Asset and Blackstone.

Diversification Opportunities for Altisource Asset and Blackstone

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Altisource and Blackstone is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Altisource Asset Management and Blackstone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone and Altisource Asset 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 Altisource Asset Management 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 has no effect on the direction of Altisource Asset i.e., Altisource Asset and Blackstone go up and down completely randomly.

Pair Corralation between Altisource Asset and Blackstone

Given the investment horizon of 90 days Altisource Asset is expected to generate 8.75 times less return on investment than Blackstone. In addition to that, Altisource Asset is 1.8 times more volatile than Blackstone. It trades about 0.0 of its total potential returns per unit of risk. Blackstone is currently generating about 0.06 per unit of volatility. If you would invest  5,060  in Blackstone on July 9, 2022 and sell it today you would earn a total of  4,101  from holding Blackstone or generate 81.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.6%
ValuesDaily Returns

Altisource Asset Management  vs.  Blackstone

 Performance (%) 
       Timeline  
Altisource Asset Man 
Altisource Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Altisource Asset Management are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Altisource Asset sustained solid returns over the last few months and may actually be approaching a breakup point.

Altisource Price Channel

Blackstone 
Blackstone Performance
0 of 100
Over the last 90 days Blackstone has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Blackstone is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Blackstone Price Channel

Altisource Asset and Blackstone Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altisource Asset and Blackstone

The main advantage of trading using opposite Altisource Asset and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altisource Asset 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.
Altisource Asset vs. Boeing Company
The idea behind Altisource Asset Management and Blackstone 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.
Blackstone vs. Boeing Company
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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