Correlation Between Carlyle and Lexinfintech Holdings
Can any of the company-specific risk be diversified away by investing in both Carlyle and Lexinfintech Holdings 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 Lexinfintech Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Lexinfintech Holdings, you can compare the effects of market volatilities on Carlyle and Lexinfintech Holdings 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 Lexinfintech Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Lexinfintech Holdings.
Diversification Opportunities for Carlyle and Lexinfintech Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carlyle and Lexinfintech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Lexinfintech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lexinfintech Holdings 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 Lexinfintech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lexinfintech Holdings has no effect on the direction of Carlyle i.e., Carlyle and Lexinfintech Holdings go up and down completely randomly.
Pair Corralation between Carlyle and Lexinfintech Holdings
Allowing for the 90-day total investment horizon Carlyle is expected to generate 10.96 times less return on investment than Lexinfintech Holdings. But when comparing it to its historical volatility, Carlyle Group is 2.96 times less risky than Lexinfintech Holdings. It trades about 0.08 of its potential returns per unit of risk. Lexinfintech Holdings is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Lexinfintech Holdings on August 31, 2024 and sell it today you would earn a total of 171.00 from holding Lexinfintech Holdings or generate 53.61% 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. Lexinfintech Holdings
Performance |
| Timeline |
| Carlyle Group |
| Lexinfintech Holdings |
Carlyle and Lexinfintech Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Lexinfintech Holdings
The main advantage of trading using opposite Carlyle and Lexinfintech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Lexinfintech Holdings 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 Lexinfintech Holdings will offset losses from the drop in Lexinfintech Holdings' long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |