Correlation Between Carlyle and Lion Group
Can any of the company-specific risk be diversified away by investing in both Carlyle and Lion Group 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 Lion Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Lion Group Holding, you can compare the effects of market volatilities on Carlyle and Lion Group 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 Lion Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Lion Group.
Diversification Opportunities for Carlyle and Lion Group
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carlyle and Lion is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Lion Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Group Holding 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 Lion Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Group Holding has no effect on the direction of Carlyle i.e., Carlyle and Lion Group go up and down completely randomly.
Pair Corralation between Carlyle and Lion Group
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 0.49 times more return on investment than Lion Group. However, Carlyle Group is 2.06 times less risky than Lion Group. It trades about 0.16 of its potential returns per unit of risk. Lion Group Holding is currently generating about -0.02 per unit of risk. If you would invest 4,872 in Carlyle Group on September 4, 2024 and sell it today you would earn a total of 406.00 from holding Carlyle Group or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlyle Group vs. Lion Group Holding
Performance |
| Timeline |
| Carlyle Group |
| Lion Group Holding |
Carlyle and Lion Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Lion Group
The main advantage of trading using opposite Carlyle and Lion Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Lion Group 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 Lion Group will offset losses from the drop in Lion Group's long position.| Carlyle vs. Visa Class A | Carlyle vs. Diamond Hill Investment | Carlyle vs. Associated Capital Group | Carlyle vs. Brookfield Corp |
| Lion Group vs. Magic Empire Global | Lion Group vs. Netcapital | Lion Group vs. Mercurity Fintech Holding | Lion Group vs. Applied Blockchain |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |