Correlation Between Associated Capital and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Carlyle Secured 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 Secured 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 Secured Lending, you can compare the effects of market volatilities on Associated Capital and Carlyle Secured 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 Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Carlyle Secured.
Diversification Opportunities for Associated Capital and Carlyle Secured
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Associated and Carlyle is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Carlyle Secured Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Secured Lending 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 Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Secured Lending has no effect on the direction of Associated Capital i.e., Associated Capital and Carlyle Secured go up and down completely randomly.
Pair Corralation between Associated Capital and Carlyle Secured
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 2.29 times less return on investment than Carlyle Secured. In addition to that, Associated Capital is 1.36 times more volatile than Carlyle Secured Lending. It trades about 0.08 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.25 per unit of volatility. If you would invest 1,648 in Carlyle Secured Lending on September 3, 2024 and sell it today you would earn a total of 85.00 from holding Carlyle Secured Lending or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Carlyle Secured Lending
Performance |
| Timeline |
| Associated Capital |
| Carlyle Secured Lending |
Associated Capital and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Carlyle Secured
The main advantage of trading using opposite Associated Capital and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Carlyle Secured 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 Secured will offset losses from the drop in Carlyle Secured's long position.| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
| Carlyle Secured vs. Federated Premier Municipal | Carlyle Secured vs. Blackrock Muniyield | Carlyle Secured vs. Federated Investors B | Carlyle Secured vs. SEI Investments |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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