Correlation Between CF Acquisition and Carlyle
Can any of the company-specific risk be diversified away by investing in both CF Acquisition 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 CF Acquisition and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CF Acquisition VII and Carlyle Group, you can compare the effects of market volatilities on CF Acquisition 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 CF Acquisition with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Acquisition and Carlyle.
Diversification Opportunities for CF Acquisition and Carlyle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CFFS and Carlyle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CF Acquisition VII and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and CF Acquisition 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 CF Acquisition VII 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 CF Acquisition i.e., CF Acquisition and Carlyle go up and down completely randomly.
Pair Corralation between CF Acquisition and Carlyle
If you would invest (100.00) in CF Acquisition VII on November 28, 2024 and sell it today you would earn a total of 100.00 from holding CF Acquisition VII or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CF Acquisition VII vs. Carlyle Group
Performance |
| Timeline |
| CF Acquisition VII |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Carlyle Group |
CF Acquisition and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Acquisition and Carlyle
The main advantage of trading using opposite CF Acquisition and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Acquisition 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.The idea behind CF Acquisition VII and Carlyle Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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