Correlation Between Dynex Capital and Blackstone

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

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

Diversification Opportunities for Dynex Capital and Blackstone

0.9

Correlation Coefficient

Dynex Capital  Blackstone

Almost no diversification

The 3 months correlation between Dynex and Blackstone is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dynex Capital and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group and Dynex 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 Dynex Capital 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 Dynex Capital i.e., Dynex Capital and Blackstone go up and down completely randomly.

Pair Corralation between Dynex Capital and Blackstone

Allowing for the 90-day total investment horizon Dynex Capital is expected to generate 3.17 times less return on investment than Blackstone. But when comparing it to its historical volatility, Dynex Capital is 1.94 times less risky than Blackstone. It trades about 0.11 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  13,532  in Blackstone Group on May 7, 2025 and sell it today you would earn a total of  3,236  from holding Blackstone Group or generate 23.91% return on investment over 90 days.

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

Dynex Capital  vs.  Blackstone Group

Dynex Capital

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dynex Capital are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Dynex Capital may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Blackstone Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Group are ranked lower than 14 (%) 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.

Pair Trading with Dynex Capital and Blackstone

The main advantage of trading using opposite Dynex Capital and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dynex 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 Dynex Capital 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.