Correlation Between Owl Rock and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both Owl Rock and Federal Agricultural 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 Owl Rock and Federal Agricultural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Owl Rock Capital and Federal Agricultural Mortgage, you can compare the effects of market volatilities on Owl Rock and Federal Agricultural 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 Owl Rock with a short position of Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owl Rock and Federal Agricultural.
Diversification Opportunities for Owl Rock and Federal Agricultural
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Owl and Federal is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Owl Rock Capital and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural and Owl Rock 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 Owl Rock Capital are associated (or correlated) with Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of Owl Rock i.e., Owl Rock and Federal Agricultural go up and down completely randomly.
Pair Corralation between Owl Rock and Federal Agricultural
If you would invest 18,831 in Federal Agricultural Mortgage on November 2, 2024 and sell it today you would earn a total of 1,006 from holding Federal Agricultural Mortgage or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Owl Rock Capital vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| Owl Rock Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federal Agricultural |
Owl Rock and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owl Rock and Federal Agricultural
The main advantage of trading using opposite Owl Rock and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owl Rock position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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