Correlation Between Blue Owl and Cion Investment

Can any of the company-specific risk be diversified away by investing in both Blue Owl and Cion Investment 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 Cion Investment 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 Cion Investment Corp, you can compare the effects of market volatilities on Blue Owl and Cion Investment 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 Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and Cion Investment.

Diversification Opportunities for Blue Owl and Cion Investment

-0.04

Correlation Coefficient

Blue Owl  Cion Investment

Good diversification

The 3 months correlation between Blue and Cion is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp 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 Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Blue Owl i.e., Blue Owl and Cion Investment go up and down completely randomly.

Pair Corralation between Blue Owl and Cion Investment

Considering the 90-day investment horizon Blue Owl Capital is expected to under-perform the Cion Investment. In addition to that, Blue Owl is 2.29 times more volatile than Cion Investment Corp. It trades about -0.06 of its total potential returns per unit of risk. Cion Investment Corp is currently generating about 0.15 per unit of volatility. If you would invest  1,134  in Cion Investment Corp on November 28, 2024 and sell it today you would earn a total of  102.00  from holding Cion Investment Corp or generate 8.99% return on investment over 90 days.

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

Blue Owl Capital  vs.  Cion Investment Corp

Blue Owl Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Owl Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Cion Investment Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cion Investment Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Cion Investment may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with Blue Owl and Cion Investment

The main advantage of trading using opposite Blue Owl and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, Cion Investment 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 Cion Investment will offset losses from the drop in Cion Investment's long position.

The idea behind Blue Owl Capital and Cion Investment Corp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.