Correlation Between Carlyle and Greystone Housing
Can any of the company-specific risk be diversified away by investing in both Carlyle and Greystone Housing 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 Greystone Housing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Greystone Housing Impact, you can compare the effects of market volatilities on Carlyle and Greystone Housing 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 Greystone Housing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Greystone Housing.
Diversification Opportunities for Carlyle and Greystone Housing
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlyle and Greystone is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Greystone Housing Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Housing Impact 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 Greystone Housing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Housing Impact has no effect on the direction of Carlyle i.e., Carlyle and Greystone Housing go up and down completely randomly.
Pair Corralation between Carlyle and Greystone Housing
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 1.1 times more return on investment than Greystone Housing. However, Carlyle is 1.1 times more volatile than Greystone Housing Impact. It trades about 0.14 of its potential returns per unit of risk. Greystone Housing Impact is currently generating about -0.03 per unit of risk. If you would invest 5,057 in Carlyle Group on August 28, 2024 and sell it today you would earn a total of 382.00 from holding Carlyle Group or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Greystone Housing Impact
Performance |
| Timeline |
| Carlyle Group |
| Greystone Housing Impact |
Carlyle and Greystone Housing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Greystone Housing
The main advantage of trading using opposite Carlyle and Greystone Housing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Greystone Housing 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 Greystone Housing will offset losses from the drop in Greystone Housing's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Greystone Housing vs. Guild Holdings Co | Greystone Housing vs. Security National Financial | Greystone Housing vs. Encore Capital Group | Greystone Housing vs. PennyMac Finl Svcs |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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