Correlation Between Afya and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Afya and Blue Owl 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 Afya and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afya and Blue Owl Capital, you can compare the effects of market volatilities on Afya and Blue Owl 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 Afya with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and Blue Owl.
Diversification Opportunities for Afya and Blue Owl
Significant diversification
The 3 months correlation between Afya and Blue is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Afya and Blue Owl Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Owl Capital and Afya 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 Afya are associated (or correlated) with Blue Owl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Owl Capital has no effect on the direction of Afya i.e., Afya and Blue Owl go up and down completely randomly.
Pair Corralation between Afya and Blue Owl
Given the investment horizon of 90 days Afya is expected to generate 2.49 times more return on investment than Blue Owl. However, Afya is 2.49 times more volatile than Blue Owl Capital. It trades about 0.04 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.1 per unit of risk. If you would invest 1,303 in Afya on September 4, 2024 and sell it today you would earn a total of 356.00 from holding Afya or generate 27.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afya vs. Blue Owl Capital
Performance |
| Timeline |
| Afya |
| Blue Owl Capital |
Afya and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and Blue Owl
The main advantage of trading using opposite Afya and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, Blue Owl 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 Blue Owl will offset losses from the drop in Blue Owl's long position.| Afya vs. Laureate Education | Afya vs. Lincoln Educational Services | Afya vs. Adtalem Global Education | Afya vs. Strategic Education |
| Blue Owl vs. Compania Cervecerias Unidas | Blue Owl vs. Summa Silver Corp | Blue Owl vs. Perseus Mining Limited | Blue Owl vs. Boston Beer |
Check out your portfolio center.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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |