Correlation Between Blue Owl and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Blue Owl and Mativ Holdings 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 Blue Owl and Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Owl Capital and Mativ Holdings, you can compare the effects of market volatilities on Blue Owl and Mativ Holdings 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 Blue Owl with a short position of Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Mativ Holdings.
Diversification Opportunities for Blue Owl and Mativ Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blue and Mativ is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings and Blue Owl 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 Blue Owl Capital are associated (or correlated) with Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Blue Owl i.e., Blue Owl and Mativ Holdings go up and down completely randomly.
Pair Corralation between Blue Owl and Mativ Holdings
Given the investment horizon of 90 days Blue Owl Capital is expected to generate 0.16 times more return on investment than Mativ Holdings. However, Blue Owl Capital is 6.28 times less risky than Mativ Holdings. It trades about 0.3 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.13 per unit of risk. If you would invest 1,453 in Blue Owl Capital on September 5, 2024 and sell it today you would earn a total of 88.00 from holding Blue Owl Capital or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Owl Capital vs. Mativ Holdings
Performance |
| Timeline |
| Blue Owl Capital |
| Mativ Holdings |
Blue Owl and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Owl and Mativ Holdings
The main advantage of trading using opposite Blue Owl and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Blue Owl vs. Mativ Holdings | Blue Owl vs. Chemours Co | Blue Owl vs. CF Industries Holdings | Blue Owl vs. Barrick Gold Corp |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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