Correlation Between Associated Capital and Carlyle
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Carlyle 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 Associated Capital and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Carlyle Group, you can compare the effects of market volatilities on Associated Capital and Carlyle 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 Associated Capital with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Carlyle.
Diversification Opportunities for Associated Capital and Carlyle
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Associated and Carlyle is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and Associated Capital 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 Associated Capital Group are associated (or correlated) with Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of Associated Capital i.e., Associated Capital and Carlyle go up and down completely randomly.
Pair Corralation between Associated Capital and Carlyle
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 9.45 times less return on investment than Carlyle. But when comparing it to its historical volatility, Associated Capital Group is 2.21 times less risky than Carlyle. It trades about 0.03 of its potential returns per unit of risk. Carlyle Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,940 in Carlyle Group on August 23, 2024 and sell it today you would earn a total of 339.00 from holding Carlyle Group or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Carlyle Group
Performance |
| Timeline |
| Associated Capital |
| Carlyle Group |
Associated Capital and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Carlyle
The main advantage of trading using opposite Associated Capital and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.| Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Munivest | Associated Capital vs. SEI Investments | Associated Capital vs. SCOR PK |
| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |