Correlation Between GCM Grosvenor and Blue Owl

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Can any of the company-specific risk be diversified away by investing in both GCM Grosvenor 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 GCM Grosvenor and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GCM Grosvenor and Blue Owl Capital, you can compare the effects of market volatilities on GCM Grosvenor 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 GCM Grosvenor with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of GCM Grosvenor and Blue Owl.

Diversification Opportunities for GCM Grosvenor and Blue Owl

GCMBlueDiversified AwayGCMBlueDiversified Away100%
0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between GCM and Blue is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GCM Grosvenor 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 GCM Grosvenor 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 GCM Grosvenor 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 GCM Grosvenor i.e., GCM Grosvenor and Blue Owl go up and down completely randomly.

Pair Corralation between GCM Grosvenor and Blue Owl

Assuming the 90 days horizon GCM Grosvenor is expected to generate 3.85 times more return on investment than Blue Owl. However, GCM Grosvenor is 3.85 times more volatile than Blue Owl Capital. It trades about 0.16 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.08 per unit of risk. If you would invest  26.00  in GCM Grosvenor on November 26, 2024 and sell it today you would earn a total of  246.00  from holding GCM Grosvenor or generate 946.15% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy87.69%
ValuesDaily Returns

GCM Grosvenor  vs.  Blue Owl Capital

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100150200
JavaScript chart by amCharts 3.21.15GCMGW OWL
       Timeline  
GCM Grosvenor 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GCM Grosvenor are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, GCM Grosvenor showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.522.53
Blue Owl Capital 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Blue Owl Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2223242526

GCM Grosvenor and Blue Owl Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-24.13-18.07-12.01-5.960.06.6613.5620.4527.3534.24 0.010.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15GCMGW OWL
       Returns  

Pair Trading with GCM Grosvenor and Blue Owl

The main advantage of trading using opposite GCM Grosvenor and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GCM Grosvenor 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 GCM Grosvenor 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.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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