Correlation Between Carlyle and Cion Investment
Can any of the company-specific risk be diversified away by investing in both Carlyle and Cion Investment 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 Cion Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Cion Investment Corp, you can compare the effects of market volatilities on Carlyle and Cion Investment 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 Cion Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Cion Investment.
Diversification Opportunities for Carlyle and Cion Investment
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carlyle and Cion is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Cion Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cion Investment Corp 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 Cion Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cion Investment Corp has no effect on the direction of Carlyle i.e., Carlyle and Cion Investment go up and down completely randomly.
Pair Corralation between Carlyle and Cion Investment
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 2.16 times more return on investment than Cion Investment. However, Carlyle is 2.16 times more volatile than Cion Investment Corp. It trades about 0.14 of its potential returns per unit of risk. Cion Investment Corp is currently generating about -0.12 per unit of risk. If you would invest 4,891 in Carlyle Group on August 24, 2024 and sell it today you would earn a total of 388.00 from holding Carlyle Group or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Cion Investment Corp
Performance |
| Timeline |
| Carlyle Group |
| Cion Investment Corp |
Carlyle and Cion Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Cion Investment
The main advantage of trading using opposite Carlyle and Cion Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Cion Investment 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 Cion Investment will offset losses from the drop in Cion Investment's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Cion Investment vs. Federated Premier Municipal | Cion Investment vs. Blackrock Muniyield | Cion Investment vs. Diamond Hill Investment | Cion Investment vs. NXG NextGen Infrastructure |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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