Correlation Between Brookfield Asset and Carlyle Secured
Can any of the company-specific risk be diversified away by investing in both Brookfield Asset 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 Brookfield Asset and Carlyle Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Asset Management and Carlyle Secured Lending, you can compare the effects of market volatilities on Brookfield Asset 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 Brookfield Asset with a short position of Carlyle Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Asset and Carlyle Secured.
Diversification Opportunities for Brookfield Asset and Carlyle Secured
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Brookfield and Carlyle is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Asset Management 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 Brookfield Asset 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 Brookfield Asset Management 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 Brookfield Asset i.e., Brookfield Asset and Carlyle Secured go up and down completely randomly.
Pair Corralation between Brookfield Asset and Carlyle Secured
Considering the 90-day investment horizon Brookfield Asset Management is expected to generate 1.19 times more return on investment than Carlyle Secured. However, Brookfield Asset is 1.19 times more volatile than Carlyle Secured Lending. It trades about 0.18 of its potential returns per unit of risk. Carlyle Secured Lending is currently generating about -0.08 per unit of risk. If you would invest 5,338 in Brookfield Asset Management on August 27, 2024 and sell it today you would earn a total of 273.00 from holding Brookfield Asset Management or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Asset Management vs. Carlyle Secured Lending
Performance |
| Timeline |
| Brookfield Asset Man |
| Carlyle Secured Lending |
Brookfield Asset and Carlyle Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Asset and Carlyle Secured
The main advantage of trading using opposite Brookfield Asset and Carlyle Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Asset 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.| Brookfield Asset vs. KKR Co LP | Brookfield Asset vs. Blackstone Group | Brookfield Asset vs. Apollo Global Management | Brookfield Asset vs. T Rowe Price |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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