Correlation Between Collegium Pharmaceutical and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Collegium Pharmaceutical 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 Collegium Pharmaceutical and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collegium Pharmaceutical and Blue Owl Capital, you can compare the effects of market volatilities on Collegium Pharmaceutical 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 Collegium Pharmaceutical with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collegium Pharmaceutical and Blue Owl.
Diversification Opportunities for Collegium Pharmaceutical and Blue Owl
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Collegium and Blue is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Collegium Pharmaceutical 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 Collegium Pharmaceutical 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 Collegium Pharmaceutical 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 Collegium Pharmaceutical i.e., Collegium Pharmaceutical and Blue Owl go up and down completely randomly.
Pair Corralation between Collegium Pharmaceutical and Blue Owl
Given the investment horizon of 90 days Collegium Pharmaceutical is expected to under-perform the Blue Owl. But the stock apears to be less risky and, when comparing its historical volatility, Collegium Pharmaceutical is 1.16 times less risky than Blue Owl. The stock trades about -0.21 of its potential returns per unit of risk. The Blue Owl Capital is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,218 in Blue Owl Capital on September 1, 2024 and sell it today you would earn a total of 155.00 from holding Blue Owl Capital or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Collegium Pharmaceutical vs. Blue Owl Capital
Performance |
| Timeline |
| Collegium Pharmaceutical |
| Blue Owl Capital |
Collegium Pharmaceutical and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collegium Pharmaceutical and Blue Owl
The main advantage of trading using opposite Collegium Pharmaceutical and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collegium Pharmaceutical 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.The idea behind Collegium Pharmaceutical and Blue Owl Capital 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.
| 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.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |