Correlation Between Blue Owl and Blackstone
Can any of the company-specific risk be diversified away by investing in both Blue Owl and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Blue Owl and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Blackstone.
Diversification Opportunities for Blue Owl and Blackstone
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blue and Blackstone is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Blue Owl i.e., Blue Owl and Blackstone go up and down completely randomly.
Pair Corralation between Blue Owl and Blackstone
Considering the 90-day investment horizon Blue Owl Capital is expected to generate 1.3 times more return on investment than Blackstone. However, Blue Owl is 1.3 times more volatile than Blackstone Group. It trades about -0.02 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.2 per unit of risk. If you would invest 2,428 in Blue Owl Capital on November 18, 2024 and sell it today you would lose (34.00) from holding Blue Owl Capital or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Owl Capital vs. Blackstone Group
Performance |
| Timeline |
| Blue Owl Capital |
| Blackstone Group |
Blue Owl and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Owl and Blackstone
The main advantage of trading using opposite Blue Owl and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone'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 |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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