Correlation Between Carlyle and Mars Acquisition
Can any of the company-specific risk be diversified away by investing in both Carlyle and Mars Acquisition 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 Mars Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Mars Acquisition Corp, you can compare the effects of market volatilities on Carlyle and Mars Acquisition 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 Mars Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Mars Acquisition.
Diversification Opportunities for Carlyle and Mars Acquisition
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carlyle and Mars is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Mars Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mars Acquisition Corp 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 Mars Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mars Acquisition Corp has no effect on the direction of Carlyle i.e., Carlyle and Mars Acquisition go up and down completely randomly.
Pair Corralation between Carlyle and Mars Acquisition
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 10.06 times more return on investment than Mars Acquisition. However, Carlyle is 10.06 times more volatile than Mars Acquisition Corp. It trades about 0.14 of its potential returns per unit of risk. Mars Acquisition Corp is currently generating about 0.1 per unit of risk. If you would invest 4,957 in Carlyle Group on September 2, 2024 and sell it today you would earn a total of 366.00 from holding Carlyle Group or generate 7.38% 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. Mars Acquisition Corp
Performance |
| Timeline |
| Carlyle Group |
| Mars Acquisition Corp |
Carlyle and Mars Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Mars Acquisition
The main advantage of trading using opposite Carlyle and Mars Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Mars Acquisition 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 Mars Acquisition will offset losses from the drop in Mars Acquisition's long position.| Carlyle vs. Apollo Global Management | Carlyle vs. Blackstone Group | Carlyle vs. Brookfield Asset Management | Carlyle vs. Ares Management LP |
| Mars Acquisition vs. Mars Acquisition Corp | Mars Acquisition vs. Swiftmerge Acquisition Corp | Mars Acquisition vs. Consilium Acquisition I | Mars Acquisition vs. Israel Acquisitions Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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