Correlation Between Blackstone and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Blue Owl Capital, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Blue Owl.
Diversification Opportunities for Blackstone and Blue Owl
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blackstone and Blue is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group 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 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 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 Blackstone i.e., Blackstone and Blue Owl go up and down completely randomly.
Pair Corralation between Blackstone and Blue Owl
Allowing for the 90-day total investment horizon Blackstone Group is expected to under-perform the Blue Owl. But the stock apears to be less risky and, when comparing its historical volatility, Blackstone Group is 1.3 times less risky than Blue Owl. The stock trades about -0.2 of its potential returns per unit of risk. The Blue Owl Capital is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,428 in Blue Owl Capital on November 18, 2024 and sell it today you would lose (34.00) from holding Blue Owl Capital or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Blue Owl Capital
Performance |
| Timeline |
| Blackstone Group |
| Blue Owl Capital |
Blackstone and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Blue Owl
The main advantage of trading using opposite Blackstone and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
| Blue Owl vs. Apollo Global Management | Blue Owl vs. KKR Co LP | Blue Owl vs. Affiliated Managers Group | Blue Owl vs. Ares Capital |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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