Correlation Between Blue Owl and Cartesian Growth
Can any of the company-specific risk be diversified away by investing in both Blue Owl and Cartesian Growth 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 Cartesian Growth 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 Cartesian Growth, you can compare the effects of market volatilities on Blue Owl and Cartesian Growth 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 Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Cartesian Growth.
Diversification Opportunities for Blue Owl and Cartesian Growth
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Blue and Cartesian is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth 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 Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of Blue Owl i.e., Blue Owl and Cartesian Growth go up and down completely randomly.
Pair Corralation between Blue Owl and Cartesian Growth
Considering the 90-day investment horizon Blue Owl Capital is expected to generate 0.14 times more return on investment than Cartesian Growth. However, Blue Owl Capital is 7.36 times less risky than Cartesian Growth. It trades about 0.06 of its potential returns per unit of risk. Cartesian Growth is currently generating about -0.22 per unit of risk. If you would invest 2,309 in Blue Owl Capital on August 30, 2024 and sell it today you would earn a total of 68.00 from holding Blue Owl Capital or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Owl Capital vs. Cartesian Growth
Performance |
| Timeline |
| Blue Owl Capital |
| Cartesian Growth |
Blue Owl and Cartesian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Owl and Cartesian Growth
The main advantage of trading using opposite Blue Owl and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth'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 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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