I need to rotate these two objects around the same pivot point with the outer object sliding up it's local z axis and ending up inside the inner object. I have tried using a transformation constraint along with a copy rotation however the object gets moved up the z axis in world space (even after selecting local space in settings) which doesn't lead to my desired outcome. Any help would be greatly appreciated. Thank you.
This is my setup with the constraints I thought would work:
Here is how the constraints work with undesired result:
This is how I want the constraints to work, with the object rotating and moving up it's local z axis at the same time: