Correlation Between Blue Owl and BlackRock TCP
Can any of the company-specific risk be diversified away by investing in both Blue Owl and BlackRock TCP 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 BlackRock TCP 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 BlackRock TCP Capital, you can compare the effects of market volatilities on Blue Owl and BlackRock TCP 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 BlackRock TCP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and BlackRock TCP.
Diversification Opportunities for Blue Owl and BlackRock TCP
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and BlackRock is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and BlackRock TCP Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock TCP Capital 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 BlackRock TCP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock TCP Capital has no effect on the direction of Blue Owl i.e., Blue Owl and BlackRock TCP go up and down completely randomly.
Pair Corralation between Blue Owl and BlackRock TCP
Considering the 90-day investment horizon Blue Owl Capital is expected to under-perform the BlackRock TCP. In addition to that, Blue Owl is 1.41 times more volatile than BlackRock TCP Capital. It trades about -0.02 of its total potential returns per unit of risk. BlackRock TCP Capital is currently generating about 0.15 per unit of volatility. If you would invest 895.00 in BlackRock TCP Capital on November 18, 2024 and sell it today you would earn a total of 46.00 from holding BlackRock TCP Capital or generate 5.14% 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. BlackRock TCP Capital
Performance |
| Timeline |
| Blue Owl Capital |
| BlackRock TCP Capital |
Blue Owl and BlackRock TCP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Owl and BlackRock TCP
The main advantage of trading using opposite Blue Owl and BlackRock TCP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, BlackRock TCP 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 BlackRock TCP will offset losses from the drop in BlackRock TCP'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 |
| BlackRock TCP vs. Triplepoint Venture Growth | BlackRock TCP vs. Sixth Street Specialty | BlackRock TCP vs. Golub Capital BDC | BlackRock TCP vs. New Mountain Finance |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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