Correlation Between Carlyle and Acres Commercial
Can any of the company-specific risk be diversified away by investing in both Carlyle and Acres Commercial 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 Carlyle and Acres Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Acres Commercial Realty, you can compare the effects of market volatilities on Carlyle and Acres Commercial 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 Carlyle with a short position of Acres Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Acres Commercial.
Diversification Opportunities for Carlyle and Acres Commercial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlyle and Acres is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Acres Commercial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acres Commercial Realty and Carlyle 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 Carlyle Group are associated (or correlated) with Acres Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acres Commercial Realty has no effect on the direction of Carlyle i.e., Carlyle and Acres Commercial go up and down completely randomly.
Pair Corralation between Carlyle and Acres Commercial
Allowing for the 90-day total investment horizon Carlyle is expected to generate 1.37 times less return on investment than Acres Commercial. In addition to that, Carlyle is 1.27 times more volatile than Acres Commercial Realty. It trades about 0.29 of its total potential returns per unit of risk. Acres Commercial Realty is currently generating about 0.5 per unit of volatility. If you would invest 1,546 in Acres Commercial Realty on October 24, 2024 and sell it today you would earn a total of 222.00 from holding Acres Commercial Realty or generate 14.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Acres Commercial Realty
Performance |
| Timeline |
| Carlyle Group |
| Acres Commercial Realty |
Carlyle and Acres Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Acres Commercial
The main advantage of trading using opposite Carlyle and Acres Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Acres Commercial 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 Acres Commercial will offset losses from the drop in Acres Commercial's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Acres Commercial vs. Lument Finance Trust | Acres Commercial vs. AG Mortgage Investment | Acres Commercial vs. Rithm Capital Corp | Acres Commercial vs. Cherry Hill Mortgage |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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