Correlation Between Blackstone and Selectquote

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

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

Diversification Opportunities for Blackstone and Selectquote

0.35

Correlation Coefficient

Blackstone  Selectquote

Weak diversification

The 3 months correlation between Blackstone and Selectquote is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Selectquote in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selectquote 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 Selectquote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selectquote has no effect on the direction of Blackstone i.e., Blackstone and Selectquote go up and down completely randomly.

Pair Corralation between Blackstone and Selectquote

Allowing for the 90-day total investment horizon Blackstone Group is expected to generate 0.55 times more return on investment than Selectquote. However, Blackstone Group is 1.8 times less risky than Selectquote. It trades about 0.09 of its potential returns per unit of risk. Selectquote is currently generating about -0.17 per unit of risk. If you would invest  13,339  in Blackstone Group on March 2, 2025 and sell it today you would earn a total of  537.00  from holding Blackstone Group or generate 4.03% return on investment over 90 days.

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

Blackstone Group  vs.  Selectquote

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. In spite of latest abnormal performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Selectquote

Risk-Adjusted Performance

Very Weak

Over the last 90 days Selectquote has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Blackstone and Selectquote

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

The idea behind Blackstone Group and Selectquote 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.