Correlation Between American Express and Owl Rock
Can any of the company-specific risk be diversified away by investing in both American Express and Owl Rock 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 American Express and Owl Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Express and Owl Rock Capital, you can compare the effects of market volatilities on American Express and Owl Rock 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 American Express with a short position of Owl Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Express and Owl Rock.
Diversification Opportunities for American Express and Owl Rock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Owl is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Express and Owl Rock Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owl Rock Capital and American Express 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 American Express are associated (or correlated) with Owl Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owl Rock Capital has no effect on the direction of American Express i.e., American Express and Owl Rock go up and down completely randomly.
Pair Corralation between American Express and Owl Rock
If you would invest (100.00) in Owl Rock Capital on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Owl Rock Capital or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American Express vs. Owl Rock Capital
Performance |
| Timeline |
| American Express |
| Owl Rock Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
American Express and Owl Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Express and Owl Rock
The main advantage of trading using opposite American Express and Owl Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Express position performs unexpectedly, Owl Rock 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 Owl Rock will offset losses from the drop in Owl Rock's long position.| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
| Owl Rock vs. Barings BDC | Owl Rock vs. Runway Growth Finance | Owl Rock vs. OneMain Holdings | Owl Rock vs. Navient Corp |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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