Correlation Between Allianzgi Equity and Blue Owl

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

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

Diversification Opportunities for Allianzgi Equity and Blue Owl

0.83

Correlation Coefficient

Allianzgi Equity  Blue Owl

Very poor diversification

The 3 months correlation between Allianzgi and Blue is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity Convertible 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 Allianzgi Equity 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 Allianzgi Equity Convertible 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 Allianzgi Equity i.e., Allianzgi Equity and Blue Owl go up and down completely randomly.

Pair Corralation between Allianzgi Equity and Blue Owl

Considering the 90-day investment horizon Allianzgi Equity is expected to generate 1.77 times less return on investment than Blue Owl. But when comparing it to its historical volatility, Allianzgi Equity Convertible is 2.48 times less risky than Blue Owl. It trades about 0.23 of its potential returns per unit of risk. Blue Owl Capital is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,320  in Blue Owl Capital on September 12, 2024 and sell it today you would earn a total of  155.00  from holding Blue Owl Capital or generate 6.68% return on investment over 90 days.

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

Allianzgi Equity Convertible  vs.  Blue Owl Capital

Allianzgi Equity Con

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Equity Convertible are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather inconsistent forward indicators, Allianzgi Equity may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Blue Owl Capital

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Owl Capital are ranked lower than 21 (%) 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 Allianzgi Equity and Blue Owl

The main advantage of trading using opposite Allianzgi Equity and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity 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 Allianzgi Equity Convertible 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.