Correlation Between Affiliated Managers and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Affiliated Managers 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 Affiliated Managers and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affiliated Managers Group and Carlyle Secured Lending, you can compare the effects of market volatilities on Affiliated Managers 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 Affiliated Managers with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affiliated Managers and Carlyle Secured.
Diversification Opportunities for Affiliated Managers and Carlyle Secured
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Affiliated and Carlyle is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Affiliated Managers 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 Affiliated Managers 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 Affiliated Managers 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 Affiliated Managers i.e., Affiliated Managers and Carlyle Secured go up and down completely randomly.
Pair Corralation between Affiliated Managers and Carlyle Secured
Considering the 90-day investment horizon Affiliated Managers is expected to generate 1.86 times less return on investment than Carlyle Secured. In addition to that, Affiliated Managers is 1.34 times more volatile than Carlyle Secured Lending. It trades about 0.03 of its total potential returns per unit of risk. Carlyle Secured Lending is currently generating about 0.08 per unit of volatility. If you would invest 1,115 in Carlyle Secured Lending on August 28, 2024 and sell it today you would earn a total of 585.00 from holding Carlyle Secured Lending or generate 52.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affiliated Managers Group vs. Carlyle Secured Lending
Performance |
| Timeline |
| Affiliated Managers |
| Carlyle Secured Lending |
Affiliated Managers and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affiliated Managers and Carlyle Secured
The main advantage of trading using opposite Affiliated Managers and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affiliated Managers 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.| Affiliated Managers vs. Brightsphere Investment Group | Affiliated Managers vs. Franklin Templeton Limited | Affiliated Managers vs. Blackrock Muni Intermediate | Affiliated Managers vs. Munivest Fund |
| Carlyle Secured vs. PowerUp Acquisition Corp | Carlyle Secured vs. Aurora Innovation | Carlyle Secured vs. HUMANA INC | Carlyle Secured vs. Aquagold International |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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