Correlation Between GEN Restaurant and Blue Owl

Can any of the company-specific risk be diversified away by investing in both GEN Restaurant 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 GEN Restaurant and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GEN Restaurant Group, and Blue Owl Capital, you can compare the effects of market volatilities on GEN Restaurant 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 GEN Restaurant with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEN Restaurant and Blue Owl.

Diversification Opportunities for GEN Restaurant and Blue Owl

-0.23

Correlation Coefficient

GEN Restaurant  Blue Owl

Very good diversification

The 3 months correlation between GEN and Blue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GEN Restaurant Group, 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 GEN Restaurant 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 GEN Restaurant Group, 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 GEN Restaurant i.e., GEN Restaurant and Blue Owl go up and down completely randomly.

Pair Corralation between GEN Restaurant and Blue Owl

Given the investment horizon of 90 days GEN Restaurant Group, is expected to under-perform the Blue Owl. In addition to that, GEN Restaurant is 1.16 times more volatile than Blue Owl Capital. It trades about -0.11 of its total potential returns per unit of risk. Blue Owl Capital is currently generating about 0.06 per unit of volatility. If you would invest  2,350  in Blue Owl Capital on October 6, 2024 and sell it today you would earn a total of  53.00  from holding Blue Owl Capital or generate 2.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GEN Restaurant Group,  vs.  Blue Owl Capital

GEN Restaurant Group,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GEN Restaurant Group, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, GEN Restaurant is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Blue Owl Capital

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Owl Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Blue Owl disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GEN Restaurant and Blue Owl

The main advantage of trading using opposite GEN Restaurant and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEN Restaurant 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.

The idea behind GEN Restaurant Group, and Blue Owl Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.