Correlation Between Carlyle and Western Asset
Can any of the company-specific risk be diversified away by investing in both Carlyle and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Western Asset Investment, you can compare the effects of market volatilities on Carlyle and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Western Asset.
Diversification Opportunities for Carlyle and Western Asset
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlyle and Western is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Western Asset Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Investment 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Investment has no effect on the direction of Carlyle i.e., Carlyle and Western Asset go up and down completely randomly.
Pair Corralation between Carlyle and Western Asset
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 3.39 times more return on investment than Western Asset. However, Carlyle is 3.39 times more volatile than Western Asset Investment. It trades about 0.09 of its potential returns per unit of risk. Western Asset Investment is currently generating about 0.04 per unit of risk. If you would invest 3,012 in Carlyle Group on August 28, 2024 and sell it today you would earn a total of 2,427 from holding Carlyle Group or generate 80.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Carlyle Group vs. Western Asset Investment
Performance |
| Timeline |
| Carlyle Group |
| Western Asset Investment |
Carlyle and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Western Asset
The main advantage of trading using opposite Carlyle and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Carlyle vs. PowerUp Acquisition Corp | Carlyle vs. Aurora Innovation | Carlyle vs. HUMANA INC | Carlyle vs. Aquagold International |
| Western Asset vs. Pioneer Floating Rate | Western Asset vs. The Gabelli Equity | Western Asset vs. Pioneer Municipal High | Western Asset vs. Nuveen Global High |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |