Correlation Between Carlyle and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Blue Owl Capital, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Blue Owl.
Diversification Opportunities for Carlyle and Blue Owl
Poor diversification
The 3 months correlation between Carlyle and Blue is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle 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 Carlyle 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 Carlyle 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 Carlyle i.e., Carlyle and Blue Owl go up and down completely randomly.
Pair Corralation between Carlyle and Blue Owl
Allowing for the 90-day total investment horizon Carlyle Group is expected to under-perform the Blue Owl. But the stock apears to be less risky and, when comparing its historical volatility, Carlyle Group is 1.28 times less risky than Blue Owl. The stock trades about -0.16 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Blue Owl Capital
Performance |
| Timeline |
| Carlyle Group |
| Blue Owl Capital |
Carlyle and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Blue Owl
The main advantage of trading using opposite Carlyle and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.| Carlyle vs. Horizon Space Acquisition | Carlyle vs. Erayak Power Solution | Carlyle vs. AlphaTime Acquisition Corp | Carlyle vs. Israel Acquisitions Corp |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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