Correlation Between Owl Rock and Ally Financial
Can any of the company-specific risk be diversified away by investing in both Owl Rock and Ally Financial 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 Ally Financial 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 Ally Financial, you can compare the effects of market volatilities on Owl Rock and Ally Financial 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 Ally Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owl Rock and Ally Financial.
Diversification Opportunities for Owl Rock and Ally Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Owl and Ally is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Owl Rock Capital and Ally Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Financial 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 Ally Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Financial has no effect on the direction of Owl Rock i.e., Owl Rock and Ally Financial go up and down completely randomly.
Pair Corralation between Owl Rock and Ally Financial
If you would invest 2,445 in Ally Financial on November 27, 2024 and sell it today you would earn a total of 1,304 from holding Ally Financial or generate 53.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Owl Rock Capital vs. Ally Financial
Performance |
| Timeline |
| Owl Rock Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Ally Financial |
Owl Rock and Ally Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owl Rock and Ally Financial
The main advantage of trading using opposite Owl Rock and Ally Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owl Rock position performs unexpectedly, Ally Financial 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 Ally Financial will offset losses from the drop in Ally Financial's long position.| Owl Rock vs. Barings BDC | Owl Rock vs. Runway Growth Finance | Owl Rock vs. OneMain Holdings | Owl Rock vs. Navient Corp |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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