Correlation Between Brockhaus Capital and Blackstone

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

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

Diversification Opportunities for Brockhaus Capital and Blackstone

-0.62

Correlation Coefficient

Brockhaus Capital  Blackstone

Excellent diversification

The 3 months correlation between Brockhaus and Blackstone is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Brockhaus Capital 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 Brockhaus Capital 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 Group has no effect on the direction of Brockhaus Capital i.e., Brockhaus Capital and Blackstone go up and down completely randomly.

Pair Corralation between Brockhaus Capital and Blackstone

Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the Blackstone. In addition to that, Brockhaus Capital is 1.42 times more volatile than Blackstone Group. It trades about -0.13 of its total potential returns per unit of risk. Blackstone Group is currently generating about 0.16 per unit of volatility. If you would invest  11,914  in Blackstone Group on May 7, 2025 and sell it today you would earn a total of  2,784  from holding Blackstone Group or generate 23.37% return on investment over 90 days.

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

Brockhaus Capital Management  vs.  Blackstone Group

Brockhaus Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days Brockhaus Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Blackstone Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Blackstone reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Brockhaus Capital and Blackstone

The main advantage of trading using opposite Brockhaus Capital and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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 Brockhaus Capital Management 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.