Correlation Between Owl Rock and OneMain Holdings
Can any of the company-specific risk be diversified away by investing in both Owl Rock and OneMain Holdings 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 OneMain Holdings 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 OneMain Holdings, you can compare the effects of market volatilities on Owl Rock and OneMain Holdings 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 OneMain Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Owl Rock and OneMain Holdings.
Diversification Opportunities for Owl Rock and OneMain Holdings
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Owl and OneMain is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Owl Rock Capital and OneMain Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMain Holdings 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 OneMain Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMain Holdings has no effect on the direction of Owl Rock i.e., Owl Rock and OneMain Holdings go up and down completely randomly.
Pair Corralation between Owl Rock and OneMain Holdings
If you would invest 4,642 in OneMain Holdings on September 1, 2024 and sell it today you would earn a total of 1,093 from holding OneMain Holdings or generate 23.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Owl Rock Capital vs. OneMain Holdings
Performance |
| Timeline |
| Owl Rock Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OneMain Holdings |
Owl Rock and OneMain Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Owl Rock and OneMain Holdings
The main advantage of trading using opposite Owl Rock and OneMain Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Owl Rock position performs unexpectedly, OneMain Holdings 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 OneMain Holdings will offset losses from the drop in OneMain Holdings' long position.| Owl Rock vs. Barings BDC | Owl Rock vs. Runway Growth Finance | Owl Rock vs. OneMain Holdings | Owl Rock vs. Navient Corp |
| OneMain Holdings vs. 360 Finance | OneMain Holdings vs. Atlanticus Holdings | OneMain Holdings vs. Qudian Inc | OneMain Holdings vs. Enova International |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |