Correlation Between RadNet and Blue Owl
Can any of the company-specific risk be diversified away by investing in both RadNet and Blue Owl 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 RadNet and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RadNet Inc and Blue Owl Capital, you can compare the effects of market volatilities on RadNet and Blue Owl 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 RadNet with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of RadNet and Blue Owl.
Diversification Opportunities for RadNet and Blue Owl
Very weak diversification
The 3 months correlation between RadNet and Blue is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding RadNet Inc and Blue Owl Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Owl Capital and RadNet 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 RadNet Inc are associated (or correlated) with Blue Owl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Owl Capital has no effect on the direction of RadNet i.e., RadNet and Blue Owl go up and down completely randomly.
Pair Corralation between RadNet and Blue Owl
Given the investment horizon of 90 days RadNet Inc is expected to generate 3.95 times more return on investment than Blue Owl. However, RadNet is 3.95 times more volatile than Blue Owl Capital. It trades about 0.15 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.11 per unit of risk. If you would invest 6,767 in RadNet Inc on September 3, 2024 and sell it today you would earn a total of 1,409 from holding RadNet Inc or generate 20.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RadNet Inc vs. Blue Owl Capital
Performance |
| Timeline |
| RadNet Inc |
| Blue Owl Capital |
RadNet and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RadNet and Blue Owl
The main advantage of trading using opposite RadNet and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RadNet position performs unexpectedly, Blue Owl 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 Blue Owl will offset losses from the drop in Blue Owl's long position.| RadNet vs. Sotera Health Co | RadNet vs. Neogen | RadNet vs. Myriad Genetics | RadNet vs. bioAffinity Technologies Warrant |
| Blue Owl vs. CarsalesCom Ltd ADR | Blue Owl vs. WEBTOON Entertainment Common | Blue Owl vs. Bright Scholar Education | Blue Owl vs. Afya |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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