Correlation Between Owl Rock and Green Dot
Can any of the company-specific risk be diversified away by investing in both Owl Rock and Green Dot 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 Green Dot 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 Green Dot, you can compare the effects of market volatilities on Owl Rock and Green Dot 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 Green Dot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owl Rock and Green Dot.
Diversification Opportunities for Owl Rock and Green Dot
Good diversification
The 3 months correlation between Owl and Green is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Owl Rock Capital and Green Dot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Dot 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 Green Dot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Dot has no effect on the direction of Owl Rock i.e., Owl Rock and Green Dot go up and down completely randomly.
Pair Corralation between Owl Rock and Green Dot
If you would invest 971.00 in Green Dot on September 1, 2024 and sell it today you would earn a total of 56.00 from holding Green Dot or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Owl Rock Capital vs. Green Dot
Performance |
| Timeline |
| Owl Rock Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Green Dot |
Owl Rock and Green Dot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owl Rock and Green Dot
The main advantage of trading using opposite Owl Rock and Green Dot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owl Rock position performs unexpectedly, Green Dot 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 Green Dot will offset losses from the drop in Green Dot's long position.| Owl Rock vs. Barings BDC | Owl Rock vs. Runway Growth Finance | Owl Rock vs. OneMain Holdings | Owl Rock vs. Navient Corp |
| Green Dot vs. Guidewire Software | Green Dot vs. Envestnet | Green Dot vs. Evertec | Green Dot vs. Axos Financial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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