Correlation Between Consumer Portfolio and Owl Rock
Can any of the company-specific risk be diversified away by investing in both Consumer Portfolio 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 Consumer Portfolio and Owl Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consumer Portfolio Services and Owl Rock Capital, you can compare the effects of market volatilities on Consumer Portfolio 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 Consumer Portfolio with a short position of Owl Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consumer Portfolio and Owl Rock.
Diversification Opportunities for Consumer Portfolio and Owl Rock
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Consumer and Owl is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Portfolio Services 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 Consumer Portfolio 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 Consumer Portfolio Services 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 Consumer Portfolio i.e., Consumer Portfolio and Owl Rock go up and down completely randomly.
Pair Corralation between Consumer Portfolio and Owl Rock
If you would invest 825.00 in Consumer Portfolio Services on September 1, 2024 and sell it today you would earn a total of 211.00 from holding Consumer Portfolio Services or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.79% |
| Values | Daily Returns |
Consumer Portfolio Services vs. Owl Rock Capital
Performance |
| Timeline |
| Consumer Portfolio |
| Owl Rock Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Consumer Portfolio and Owl Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consumer Portfolio and Owl Rock
The main advantage of trading using opposite Consumer Portfolio and Owl Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consumer Portfolio 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.| Consumer Portfolio vs. Atlanticus Holdings Corp | Consumer Portfolio vs. Mill City Ventures | Consumer Portfolio vs. Nelnet Inc | Consumer Portfolio vs. Senmiao Technology |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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