Correlation Between Xp and Blue Owl
Can any of the company-specific risk be diversified away by investing in both Xp 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 Xp and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and Blue Owl Capital, you can compare the effects of market volatilities on Xp 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 Xp with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and Blue Owl.
Diversification Opportunities for Xp and Blue Owl
Excellent diversification
The 3 months correlation between Xp and Blue is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xp 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 Xp 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 Xp 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 Xp i.e., Xp and Blue Owl go up and down completely randomly.
Pair Corralation between Xp and Blue Owl
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the Blue Owl. In addition to that, Xp is 2.97 times more volatile than Blue Owl Capital. It trades about -0.01 of its total potential returns per unit of risk. Blue Owl Capital is currently generating about 0.12 per unit of volatility. If you would invest 1,182 in Blue Owl Capital on August 24, 2024 and sell it today you would earn a total of 340.00 from holding Blue Owl Capital or generate 28.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. Blue Owl Capital
Performance |
| Timeline |
| Xp Inc |
| Blue Owl Capital |
Xp and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and Blue Owl
The main advantage of trading using opposite Xp and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp 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.| Xp vs. Up Fintech Holding | Xp vs. Bit Digital | Xp vs. Marathon Digital Holdings | Xp vs. MarketAxess Holdings |
| Blue Owl vs. Jacobs Solutions | Blue Owl vs. CECO Environmental Corp | Blue Owl vs. Primoris Services | Blue Owl vs. Q2 Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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