Correlation Between Owl Rock and American Express
Can any of the company-specific risk be diversified away by investing in both Owl Rock and American Express 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 American Express 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 American Express, you can compare the effects of market volatilities on Owl Rock and American Express 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 American Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owl Rock and American Express.
Diversification Opportunities for Owl Rock and American Express
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Owl and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Owl Rock Capital and American Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Express 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 American Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Express has no effect on the direction of Owl Rock i.e., Owl Rock and American Express go up and down completely randomly.
Pair Corralation between Owl Rock and American Express
If you would invest 15,767 in American Express on November 27, 2024 and sell it today you would earn a total of 13,773 from holding American Express or generate 87.35% 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. American Express
Performance |
| Timeline |
| Owl Rock Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| American Express |
Owl Rock and American Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owl Rock and American Express
The main advantage of trading using opposite Owl Rock and American Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owl Rock position performs unexpectedly, American Express 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 American Express will offset losses from the drop in American Express' long position.| Owl Rock vs. Barings BDC | Owl Rock vs. Runway Growth Finance | Owl Rock vs. OneMain Holdings | Owl Rock vs. Navient Corp |
| American Express vs. Visa Class A | American Express vs. PayPal Holdings | American Express vs. Capital One Financial | American Express vs. Upstart Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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