Correlation Between Carlyle and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Carlyle and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Dow Jones Industrial, you can compare the effects of market volatilities on Carlyle and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Dow Jones.
Diversification Opportunities for Carlyle and Dow Jones
Very poor diversification
The 3 months correlation between Carlyle and Dow is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Carlyle i.e., Carlyle and Dow Jones go up and down completely randomly.
Pair Corralation between Carlyle and Dow Jones
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 2.64 times more return on investment than Dow Jones. However, Carlyle is 2.64 times more volatile than Dow Jones Industrial. It trades about 0.12 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of risk. If you would invest 5,057 in Carlyle Group on August 27, 2024 and sell it today you would earn a total of 308.00 from holding Carlyle Group or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Dow Jones Industrial
Performance |
| Timeline |
Carlyle and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Carlyle Group
Pair trading matchups for Carlyle
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Carlyle and Dow Jones
The main advantage of trading using opposite Carlyle and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |