Correlation Between Blue Owl and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Blue Owl and GEN Restaurant 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 GEN Restaurant 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 GEN Restaurant Group,, you can compare the effects of market volatilities on Blue Owl and GEN Restaurant 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 GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Owl and GEN Restaurant.
Diversification Opportunities for Blue Owl and GEN Restaurant
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and GEN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, 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 GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Blue Owl i.e., Blue Owl and GEN Restaurant go up and down completely randomly.
Pair Corralation between Blue Owl and GEN Restaurant
Considering the 90-day investment horizon Blue Owl is expected to generate 15.5 times less return on investment than GEN Restaurant. But when comparing it to its historical volatility, Blue Owl Capital is 24.72 times less risky than GEN Restaurant. It trades about 0.08 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in GEN Restaurant Group, on October 6, 2024 and sell it today you would earn a total of 770.00 from holding GEN Restaurant Group, or generate 9.223372036854776E16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 80.84% |
Values | Daily Returns |
Blue Owl Capital vs. GEN Restaurant Group,
Performance |
Timeline |
Blue Owl Capital |
GEN Restaurant Group, |
Blue Owl and GEN Restaurant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Blue Owl and GEN Restaurant
The main advantage of trading using opposite Blue Owl and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Owl position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant's long position.Blue Owl vs. Apollo Global Management | Blue Owl vs. KKR Co LP | Blue Owl vs. Affiliated Managers Group | Blue Owl vs. Ares Capital |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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