Correlation Between BlackRock TCP and Blue Owl
Can any of the company-specific risk be diversified away by investing in both BlackRock TCP 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 BlackRock TCP and Blue Owl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock TCP Capital and Blue Owl Capital, you can compare the effects of market volatilities on BlackRock TCP 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 BlackRock TCP with a short position of Blue Owl. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock TCP and Blue Owl.
Diversification Opportunities for BlackRock TCP and Blue Owl
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BlackRock and Blue is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock TCP Capital 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 BlackRock TCP 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 BlackRock TCP Capital 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 BlackRock TCP i.e., BlackRock TCP and Blue Owl go up and down completely randomly.
Pair Corralation between BlackRock TCP and Blue Owl
Given the investment horizon of 90 days BlackRock TCP Capital is expected to under-perform the Blue Owl. But the stock apears to be less risky and, when comparing its historical volatility, BlackRock TCP Capital is 1.57 times less risky than Blue Owl. The stock trades about -0.27 of its potential returns per unit of risk. The Blue Owl Capital is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,980 in Blue Owl Capital on July 19, 2025 and sell it today you would lose (362.00) from holding Blue Owl Capital or give up 18.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlackRock TCP Capital vs. Blue Owl Capital
Performance |
| Timeline |
| BlackRock TCP Capital |
| Blue Owl Capital |
BlackRock TCP and Blue Owl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlackRock TCP and Blue Owl
The main advantage of trading using opposite BlackRock TCP and Blue Owl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock TCP 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.| BlackRock TCP vs. Triplepoint Venture Growth | BlackRock TCP vs. Sixth Street Specialty | BlackRock TCP vs. Golub Capital BDC | BlackRock TCP vs. New Mountain Finance |
| Blue Owl vs. Ares Management LP | Blue Owl vs. TPG Inc | Blue Owl vs. Patria Investments | Blue Owl vs. Apollo Global Management |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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