Correlation Between Blue Owl and Credit Suisse

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

Diversification Opportunities for Blue Owl and Credit Suisse

0.78

Correlation Coefficient

Blue Owl  Credit Suisse

Poor diversification

The 3 months correlation between Blue and Credit is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Blue Owl Capital and Credit Suisse X Links in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse X 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse X has no effect on the direction of Blue Owl i.e., Blue Owl and Credit Suisse go up and down completely randomly.

Pair Corralation between Blue Owl and Credit Suisse

Considering the 90-day investment horizon Blue Owl Capital is expected to under-perform the Credit Suisse. In addition to that, Blue Owl is 2.39 times more volatile than Credit Suisse X Links. It trades about -0.05 of its total potential returns per unit of risk. Credit Suisse X Links is currently generating about -0.01 per unit of volatility. If you would invest  6,126  in Credit Suisse X Links on December 27, 2024 and sell it today you would lose (65.00) from holding Credit Suisse X Links or give up 1.06% of portfolio value over 90 days.

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

Blue Owl Capital  vs.  Credit Suisse X Links

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.

Credit Suisse X

Risk-Adjusted Performance

Very Weak

Over the last 90 days Credit Suisse X Links has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Credit Suisse is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Blue Owl and Credit Suisse

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

The idea behind Blue Owl Capital and Credit Suisse X Links 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.