Correlation Between Gabelli Convertible and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Gabelli Convertible 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 Gabelli Convertible and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Convertible And and Blue Owl Capital, you can compare the effects of market volatilities on Gabelli Convertible 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 Gabelli Convertible with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Convertible and Blue Owl.
Diversification Opportunities for Gabelli Convertible and Blue Owl
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gabelli and Blue is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Convertible And 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 Gabelli Convertible 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 Gabelli Convertible And 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 Gabelli Convertible i.e., Gabelli Convertible and Blue Owl go up and down completely randomly.
Pair Corralation between Gabelli Convertible and Blue Owl
Considering the 90-day investment horizon Gabelli Convertible is expected to generate 2.4 times less return on investment than Blue Owl. But when comparing it to its historical volatility, Gabelli Convertible And is 1.86 times less risky than Blue Owl. It trades about 0.1 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,287 in Blue Owl Capital on August 29, 2024 and sell it today you would earn a total of 1,114 from holding Blue Owl Capital or generate 86.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Convertible And vs. Blue Owl Capital
Performance |
| Timeline |
| Gabelli Convertible And |
| Blue Owl Capital |
Gabelli Convertible and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Convertible and Blue Owl
The main advantage of trading using opposite Gabelli Convertible and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Convertible 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.| Gabelli Convertible vs. Gabelli Global Small | Gabelli Convertible vs. MFS Investment Grade | Gabelli Convertible vs. Eaton Vance National | Gabelli Convertible vs. GAMCO Natural Resources |
| Blue Owl vs. Carlyle Group | Blue Owl vs. TPG Inc | Blue Owl vs. Carlyle Secured Lending | Blue Owl vs. Brookfield 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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