Correlation Between Blue Owl and Bridge Investment
Can any of the company-specific risk be diversified away by investing in both Blue Owl and Bridge Investment 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 Blue Owl and Bridge Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Owl Capital and Bridge Investment Group, you can compare the effects of market volatilities on Blue Owl and Bridge Investment 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 Blue Owl with a short position of Bridge Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Bridge Investment.
Diversification Opportunities for Blue Owl and Bridge Investment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and Bridge is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Bridge Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridge Investment and Blue Owl 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 Blue Owl Capital are associated (or correlated) with Bridge Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridge Investment has no effect on the direction of Blue Owl i.e., Blue Owl and Bridge Investment go up and down completely randomly.
Pair Corralation between Blue Owl and Bridge Investment
Considering the 90-day investment horizon Blue Owl Capital is expected to generate 0.9 times more return on investment than Bridge Investment. However, Blue Owl Capital is 1.11 times less risky than Bridge Investment. It trades about 0.12 of its potential returns per unit of risk. Bridge Investment Group is currently generating about 0.1 per unit of risk. If you would invest 1,745 in Blue Owl Capital on September 1, 2024 and sell it today you would earn a total of 628.00 from holding Blue Owl Capital or generate 35.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Owl Capital vs. Bridge Investment Group
Performance |
| Timeline |
| Blue Owl Capital |
| Bridge Investment |
Blue Owl and Bridge Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Owl and Bridge Investment
The main advantage of trading using opposite Blue Owl and Bridge Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, Bridge Investment 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 Bridge Investment will offset losses from the drop in Bridge Investment's long position.| Blue Owl vs. Apollo Global Management | Blue Owl vs. KKR Co LP | Blue Owl vs. Affiliated Managers Group | Blue Owl vs. Ares Capital |
| Bridge Investment vs. Federated Premier Municipal | Bridge Investment vs. Blackrock Muniyield | Bridge Investment vs. Diamond Hill Investment | Bridge Investment vs. NXG NextGen Infrastructure |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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