Correlation Between Blackstone and IREN

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

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

Diversification Opportunities for Blackstone and IREN

0.88

Correlation Coefficient

Blackstone  IREN

Very poor diversification

The 3 months correlation between Blackstone and IREN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and IREN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IREN and Blackstone 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 Blackstone Group are associated (or correlated) with IREN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IREN has no effect on the direction of Blackstone i.e., Blackstone and IREN go up and down completely randomly.

Pair Corralation between Blackstone and IREN

Allowing for the 90-day total investment horizon Blackstone is expected to generate 4.66 times less return on investment than IREN. But when comparing it to its historical volatility, Blackstone Group is 2.16 times less risky than IREN. It trades about 0.17 of its potential returns per unit of risk. IREN is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  689.00  in IREN on May 8, 2025 and sell it today you would earn a total of  956.00  from holding IREN or generate 138.75% return on investment over 90 days.

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

Blackstone Group  vs.  IREN

Blackstone Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Blackstone showed solid returns over the last few months and may actually be approaching a breakup point.

IREN

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in IREN are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, IREN displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackstone and IREN

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

The idea behind Blackstone Group and IREN 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.