Correlation Between Blackstone and Heidelberger Beteiligungshold

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

By analyzing existing cross correlation between Blackstone Group and Heidelberger Beteiligungsholding AG, you can compare the effects of market volatilities on Blackstone and Heidelberger Beteiligungshold 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 Heidelberger Beteiligungshold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Heidelberger Beteiligungshold.

Diversification Opportunities for Blackstone and Heidelberger Beteiligungshold

-0.24

Correlation Coefficient

Blackstone  Heidelberger Beteiligungshold

Very good diversification

The 3 months correlation between Blackstone and Heidelberger is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Heidelberger Beteiligungsholdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heidelberger Beteiligungshold 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 Heidelberger Beteiligungshold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heidelberger Beteiligungshold has no effect on the direction of Blackstone i.e., Blackstone and Heidelberger Beteiligungshold go up and down completely randomly.

Pair Corralation between Blackstone and Heidelberger Beteiligungshold

Assuming the 90 days trading horizon Blackstone Group is expected to under-perform the Heidelberger Beteiligungshold. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Group is 3.01 times less risky than Heidelberger Beteiligungshold. The stock trades about -0.04 of its potential returns per unit of risk. The Heidelberger Beteiligungsholding AG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  6,985  in Heidelberger Beteiligungsholding AG on March 19, 2025 and sell it today you would earn a total of  4,115  from holding Heidelberger Beteiligungsholding AG or generate 58.91% return on investment over 90 days.

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

Blackstone Group  vs.  Heidelberger Beteiligungsholdi

Blackstone Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Heidelberger Beteiligungshold

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Heidelberger Beteiligungsholding AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Heidelberger Beteiligungshold reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Blackstone and Heidelberger Beteiligungshold

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

The idea behind Blackstone Group and Heidelberger Beteiligungsholding AG 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.