Correlation Between CSL and Blackstone Minerals

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

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

Diversification Opportunities for CSL and Blackstone Minerals

-0.51

Correlation Coefficient

CSL  Blackstone Minerals

Excellent diversification

The 3 months correlation between CSL and Blackstone is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CSL and Blackstone Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Minerals and CSL 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 CSL are associated (or correlated) with Blackstone Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Minerals has no effect on the direction of CSL i.e., CSL and Blackstone Minerals go up and down completely randomly.

Pair Corralation between CSL and Blackstone Minerals

Assuming the 90 days trading horizon CSL is expected to generate 0.32 times more return on investment than Blackstone Minerals. However, CSL is 3.16 times less risky than Blackstone Minerals. It trades about 0.21 of its potential returns per unit of risk. Blackstone Minerals is currently generating about -0.11 per unit of risk. If you would invest  24,078  in CSL on April 22, 2025 and sell it today you would earn a total of  1,660  from holding CSL or generate 6.89% return on investment over 90 days.

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

CSL  vs.  Blackstone Minerals

CSL

Risk-Adjusted Performance

OK

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

Blackstone Minerals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Minerals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Blackstone Minerals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSL and Blackstone Minerals

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

The idea behind CSL and Blackstone Minerals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.