Correlation Between Carlyle and First Eagle
Can any of the company-specific risk be diversified away by investing in both Carlyle and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and First Eagle Alternative, you can compare the effects of market volatilities on Carlyle and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and First Eagle.
Diversification Opportunities for Carlyle and First Eagle
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlyle and First is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and First Eagle Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Alternative 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Alternative has no effect on the direction of Carlyle i.e., Carlyle and First Eagle go up and down completely randomly.
Pair Corralation between Carlyle and First Eagle
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 8.09 times more return on investment than First Eagle. However, Carlyle is 8.09 times more volatile than First Eagle Alternative. It trades about 0.01 of its potential returns per unit of risk. First Eagle Alternative is currently generating about 0.1 per unit of risk. If you would invest 3,703 in Carlyle Group on January 7, 2025 and sell it today you would lose (11.00) from holding Carlyle Group or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. First Eagle Alternative
Performance |
| Timeline |
| Carlyle Group |
| First Eagle Alternative |
Carlyle and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and First Eagle
The main advantage of trading using opposite Carlyle and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| First Eagle vs. Gladstone Investment | First Eagle vs. Customers Bancorp | First Eagle vs. Ready Capital | First Eagle vs. Great Elm Capital |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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