Correlation Between Owl Rock and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Owl Rock and Barings BDC 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 Barings BDC 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 Barings BDC, you can compare the effects of market volatilities on Owl Rock and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owl Rock and Barings BDC.
Diversification Opportunities for Owl Rock and Barings BDC
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Owl and Barings is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Owl Rock Capital and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Owl Rock i.e., Owl Rock and Barings BDC go up and down completely randomly.
Pair Corralation between Owl Rock and Barings BDC
If you would invest 975.00 in Barings BDC on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Barings BDC or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Owl Rock Capital vs. Barings BDC
Performance |
| Timeline |
| Owl Rock Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Barings BDC |
Owl Rock and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owl Rock and Barings BDC
The main advantage of trading using opposite Owl Rock and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owl Rock position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Owl Rock vs. Barings BDC | Owl Rock vs. Runway Growth Finance | Owl Rock vs. OneMain Holdings | Owl Rock vs. Navient Corp |
| Barings BDC vs. Runway Growth Finance | Barings BDC vs. OneMain Holdings | Barings BDC vs. Navient Corp | Barings BDC vs. Oaktree Specialty Lending |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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